The tax filing deadline is quickly approaching for the 2022 tax year. This can be a stressful time for many small business owners, especially if you’re not prepared. But, with a little planning and organization, you can make tax season a breeze. Here are five tax season tips to help your small business stay on top of its taxes this year.
1. Keep Accurate Records
The first step to easier tax filing is keeping accurate financial records throughout the year. While this isn’t necessarily something you can implement retroactively, it’s certainly a good idea to keep in mind going forward.
You should have a system in place for tracking all your income and expenses, like payroll and multi-purpose checks, accounting software, or a simple spreadsheet.
Above all, save your receipts and invoices throughout the year, and keep them organized in case you need to refer back to them later.
2. Know The Deadlines
There are several deadlines you’ll need to keep track of for the 2022 tax filing season, including the deadline for filing your tax return, and the deadlines for making estimated tax payments throughout the year.
Make sure you have a calendar or reminder system in place so you don’t miss any important deadlines and have to pay penalties.
With this in mind, you’ll want to stay up-to-date on the latest from the IRS to stay on top of all these relevant dates, resources, calculators, and more.
3. Hire a Professional
If you don’t feel comfortable preparing your taxes on your own, or if your business has more complex tax needs, you can always hire a tax professional.
They are experts in the field and can help you identify deductions and credits that you may not have known about–or help you avoid making costly mistakes that could trigger an audit.
4. Maximize Your Deductions
As a small business owner, there are many deductions that you may be able to take advantage of. Deductions will reduce your total income which is subject to federal and state taxation.
For instance, you may be able to deduct expenses related to your home office, business travel, or even equipment and supplies you purchase for business use.
This is another reason why tracking your expenses throughout the year can be so vital because it can help you take advantage of all the deductions you’re entitled to, which can help lower your tax bill as a result.
5. Plan Ahead
Lastly, the biggest tip for small business owners to have a smooth tax season is to plan ahead. If you know you’ll owe taxes, it can be worthwhile to start setting aside money early so you’re not caught off guard when it’s time to pay.
As we mentioned above, it may be valuable to work with a tax professional to develop a strategy that can help you minimize your tax liability for the current year and beyond.
Tax season doesn’t have to be a headache for small business owners. By keeping accurate records, knowing the applicable deadlines, hiring a professional, and planning ahead, you can help the tax season go much more smoothly for your business.