Filing tax returns each year can be stressful, especially if you have a small business startup. There are some things you can do throughout the year to make filing tax returns less stressful. Here are some important steps to take so that tax filing season goes smoothly:
1. Keep Adequate Records – It can’t be said enough that keeping accurate financial records for both income and expenses for your business is critical. Whether you invest in bookkeeping software or do monthly finance reviews or both, knowing that your records are in order is the first step toward successfully filing tax returns.
2. Correctly Classify Your Business – Did you know that the way you classify your business affects your tax returns? Make sure that you have properly classified your business, such as an LLC (Limited Liability Company), Sole Proprietorship, Single Member LLC, or something else.
3. Claim All Income – Depending on the type of work you do, you’ll want to make sure to claim all of your income, even if a client doesn’t issue you a 1099. Income that doesn’t match what you reported to the IRS can be a red flag that causes them to want to do an audit of your business and/or personal finances.
4. Hire a Quality Accountant – One of the best ways to mitigate any questions with your business accounting is to hire an accountant who can make sure that all of your records are in order. This way, when you file tax returns for yourself and your business, you know that your documents are accurate and filed in a timely manner.
At America’s Best Payroll, we know that tax season is a stressful time for small business owners. Let us help you make your next tax return filing easier. Call today to find out more about our small business accounting solutions.