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Surviving Tax Season as a Growing Business

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

Get Organized

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
  • Invoices
  • 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
  • Insurance

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.

Peter Miklos
Peter Miklos
Chief Lending Officer 717.928.2315 NMLS #810113 View My Profile
Mike Farina
Mike Farina
Business Banker, Lancaster 717.928.2383 NMLS #615577 View My Profile
Bob Bradfield
Bob Bradfield
Business Banker, Lancaster 717.928.2348 NMLS #360954 View My Profile
Mike Maurer
Mike Maurer
Commercial Loan Officer, Lancaster 717.928.2312 NMLS #456883 View My Profile
Craig Portner
Craig Portner
Commercial Loan Officer, Lancaster 717.928.2319 NMLS #456888 View My Profile
Deb Dupler
Deb Dupler
Business Banker, Lancaster 717.492.2238 NMLS #456874 View My Profile
Jamie Muir
Jamie Muir
Commercial Loan Officer, Lancaster 717.572.9488 NMLS #1201507 View My Profile
Jeff Grove
Jeff Grove
Commercial Loan Officer, York 717.449.0860 NMLS #1254096 View My Profile
Chau Nguyen
Chau Nguyen
Commercial Loan Officer, Lancaster 717.519.9156 NMLS #1291841 View My Profile
Virginia Klingensmith
Virginia Klingensmith
Commercial Portfolio Manager 717.928.2313 NMLS #404960 View My Profile
Jeff Snyder
Jeff Snyder
Commercial Loan Manager, York 717.881.6959
Nathan Edmunds
Nate Edmunds
Commercial Loan Officer, Chester 267.565.9768 NMLS #1590306 View My Profile
Brady Barnes
Brady Barnes
Commercial Loan Officer, York 717-916-3313 View My Profile

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