Top Tax Preparation Tips For Small Businesses

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Top Tax Preparation Tips For Small Businesses
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• Okay, so small business taxes might not be a
  subject we want to linger on, but for those of us
  out there who know that this same subject is
  going to keep coming around, year in year out, we
  may as well learn what we can in order to try and
  simplify the process and ensure that when it is
  tax time, we have to spend as little time
  preparing for it, as possible.
• So as a small business owner preparing your taxes
  for the first time, what are some of the top
  tips?

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• First of all, be aware of when your taxes are
  due!
• Most owners of small businesses file their
  business tax returns along with their personal
  returns, and so it would stand to reason that the
  due date for business returns would be April
  15th, the same as the deadline for personal
  returns.

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• Know what type of business you own
• If your small business is not a corporation, then
  it will either be a sole proprietorship, a
  partnership or a limited liability company.
  Whichever type of business yours is, will
  determine which forms you will need to fill out
  at tax time.

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• Determine what documents you will need to prepare
  your return
• You will need to have some financial reports and
  various other documents at hand when preparing
  your tax return, which will include an end of
  year loss and profit statement and a balance
  sheet for the beginning and end of the fiscal
  year.

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• Remember that you will have to pay
  self-employment taxes
• For small business owners, social security and
  Medicare taxes must be paid at a percentage of
  your earnings from self-employment.

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• Dont let audit traps trip you up
• Tax return time is always made more complicated
  by tax audits, and whether you believe the
  chances of your business being in the spotlight
  or not, its wise to try and avoid making any
  mistakes that could lead to questions being asked
  at tax time. A prime example of a common slip up
  when filing tax returns, is to misclassify
  employees, something which can be seen as a
  direct attempt to avoid certain payroll taxes and
  can result in penalties. For instance,
  classifying an employee as an independent
  contractor could be red flagged by the IRS.

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• Apply for an automatic extension for filing your
  tax returns
• For small business tax returns, an extension of
  six months can be applied for, making the due
  date October 15th. However, take note that this
  extension doesnt apply to the payment, only to
  the filing time, and your estimated taxes must
  still be paid by the due date in April.

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• For peace of mind, hire a tax return professional
• If the many rules, regulations and worries of
  fines are taking up too much of your valuable
  time, why not give yourself the peace of mind of
  hiring a tax return professional? With their
  intimate tax preparation knowledge, you wont
  have to lose a wink of sleep over your taxes, and
  they could even end up saving you money that you
  might otherwise have lost in penalties or
  misfiled information.

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• At Heyer Associates, we proactively assist our
  individual and small business clients in meeting
  their goals. Our key area of focus is ensuring
  that our clients remain compliant with federal
  and state tax laws by providing them with high
  quality accounting and tax preparation in Miami.
  If you are looking for Miami accountant, Heyer
  Associates would be a right option.