Filing and paying taxes for small businesses is a legal responsibility and not a pleasure. Business owners should be aware of preparing for the deadline all year in order to take the stress out of tax season.
Filing and Paying on Time
Non-filing and late payment incur penalties which can add up significantly if let lapse. By listed percentages, the costs of penalties will grow on a monthly basis. It is important to check with the officials to know what those charges are before the April deadline.
When a serious issue arises, you may request an extension to avoid being charged. The recommendation is to prepare ahead of time and not after the tax deadline.
Pay Estimated Taxes throughout the Year
The small business owner should be aware of the estimated taxes and the rules thereof. Estimated amounts expected by the government are stipulated by the government, so you must find out the information. You should work with your bookkeeper to make the proper submissions at the right time.
Business Deductions as an Advantage
The items that are allowed are specific. You may reduce your tax load by applying the specified expenses such as furniture, supplies, equipment and more. Review the list with your accountant.
Track Expenses Accurately
Make detailed records of your expenses. Keep all receipts for savings, travel etc. and categorize them. Bookkeepers can help streamline your process by managing your books, categorizing your information and advising you on productive solutions. Such organisation can save time with your accountant come the tax deadline.
Business Expenses and Personal Expenses must be Separate.
Confusing business expenses and personal expenses can become murky and present problems when preparing your tax returns as the deadline approaches. Use separate bank and credit card accounts; keep receipts separate, and pay yourself a salary rather than drawing from business accounts. Get advice from your bookkeeper.
Hire a Professional Accountant
Tax software can be a temptation to save the cost of a professional accountant. For complex business organisations, the price of accounting services can simplify problems. You can avoid errors and use the accountant’s business expertise for greater deductions.
Having researched references or having been advised of good choices from trusted associates and friends, employ experienced accountants.
DO YOURSELF A FAVOUR: FOLLOW THE RULES AND BE PROFESSIONAL.
For more: contact www.leonardtam.com or call 416-783-2222.