April 15th will be here before you know it – have you filed your taxes yet? As a business owner, you have a million things constantly pulling your attention, making it hard to find the time to get your taxes in order. However, properly filing taxes is essential for any growing business. We want to help your growing business survive and thrive during tax season. Check out these important tips to keep in mind.
Have you planned out your business’s budget for the year? Check out the five important business budget figures you need to account for.
Tips for Surviving Tax Season
First things first, you need to make sure you get organized. Gather essential paperwork that may be needed to back-up deduction claims. This means things like receipts and financial records. Review your reports and determine how your year went financially.
Records You Need to Complete Your Taxes Include:
- Bank records
- Register tapes
- Credit card receipts
- Cancelled checks
- Petty cash slips
- Business credit card accounts
- Professional services fees
- Business receipts for subscription services and memberships
Update EMPLOYEE Information
It’s important to correctly identify your employees versus independent contractors. Misclassification of employees as independent contractors can be a warning sign to the IRS that you’re trying to avoid paying payroll taxes. Having up-to-date, accurate employee information is vital when preparing your business’s taxes.
TaKe advantage of technology
In today’s technological era, not taking advantage of digital tools when preparing your taxes is like playing basketball with one hand tied behind your back – you’re making it unnecessarily hard on yourself! Utilizing effective software can cut down on time, errors, and stress. Accounting software can keep track of accounts, expenses, and payroll. Electronic statements help prevent papers from piling up on your desk, making it easier to keep finances up to date. Don’t just wait until tax season to track expenses. Plenty of desktop and mobile apps exist to help log minutes, miles, and other related business expenses.
THE SMALL STUFF ADDS UP
As your business grows, you’ll need to spend more money on office space, supplies, hiring efforts, and more. The good news? A portion of these costs can often be deducted. For example: Did you know business lunch costs are deductible up to 50%? Or that standard advertising costs are fully deductible? Keep detailed records of these often overlooked components of a growing business:
- Building utility costs
- Coworking space fees or workspace rent
- Travel costs and road mileage
- Office supplies
- Subscriptions to media and digital / desktop application programs
- Advertising costs
- Cell phone service bills
- Payment processing fees
Count on experts
Many business owners have the “I can do it myself” mentality because they are driven, hardworking people. However, when it comes to completing your taxes, its a situation where calling in an expert will save you both time and a lot of headaches. Focus your attention on keeping detailed records. When tax season rolls around, you will have everything you need to work through annual expenses (and exemptions) with a qualified professional.
Union Main Street Business Banking
When it comes to banking for your business, no one knows how to work with a growing business like Union Community Bank. Nine members of our business team are or have been small business owners themselves. We have the experience you need to be successful. Meet our Union Mains Street Business Banking team at one of our 14 convenient locations. Contact us today.