Business taxes are the bane of small business owners when tax season approaches. If you choose to hire an accountant to do your taxes every year, it can take a big chunk out of your small business budget. If you always hire help and look the other way while someone else prepares your business taxes, you'll never learn how to file on your own. However, if you eventually become self-reliant in filing your own small business taxes, you will save money CPA fees and learn what increases and decreases your overall tax liability.
For the first few years after you open your small business, hire a professional to prepare your taxes, but work with him or her closely to learn the finer points of filing business taxes. Instead of handing him or her a pile of receipts, sit down with your tax preparer and actively learn which forms to file, what deductions and tax credits you can claim, etc. Eventually, you can do this on your own.
Keep your files organized. Preparing small business taxes is much easier when you have all the papers together. It will also
reduce your stress if you become subject to a random audit.
Attend tax workshops for small business owners; they are well worth the investment in time and money. You will learn how to use tax preparation software for businesses, how to file self-employment taxes apart from your business, and how to do payroll taxes more efficiently if you do them yourself.
Take advantage of IRS helplines and the IRS website to understand confusing forms. The IRS wants to help you get the taxes done right the first time around, just as much as you do! Correctly filed taxes also save the government money.
After preparing your business taxes on your own, hire a tax expert to check them over. Note any mistakes or deductions that you missed. This will ensure that you can do them correctly the next time you file.
Prepare your small business taxes early, but mail the forms close to the due date if you owe taxes. Don't pay any earlier than you have to. If you are owed a refund, mail them sooner to get your money faster.
© Had2Know 2010