Tax Tips for Small Businesses

iStock_000012964738XSmall As a small business owner, tax season may be a stressful time for you as you think about filing for the year. Not only will you want to ensure that you are not overpaying and losing valuable revenue with your business taxes, but you will also want to steer clear of mistakes that could lead to a devastating audit. Here’s a look at the ways you can make your life easier come tax time so that you reduce the burden of taxes on your business.

Diligently track everything.

Keeping good records is the first step for a stress-free tax season. While this seems relatively obvious, there are many small businesses that struggle because their books are not well-organized.

Don’t forget about tax credits.

If you don’t take advantage of tax credits offered through the Small Business Act and Affordable Care Act, you could be costing your business significant sums of money. Working with an experienced accounting firm may help you take advantage of all the credits you qualify for so that you can put more revenue back into your business.

Be aware of audit traps.

There are a few red flags that might prompt an audit for your small business, so be careful in areas such as independent contractor classification, home office deductions, and large-sum miscellaneous deductions. Make sure that you label everything correctly and back deductions up with proof where needed so that you don’t get caught in a long and tedious audit down the road.

Keep expenses separated.

It can be difficult to track your own expenses and personal ones at the same time, but personal expenses are an area where auditors will heavily scrutinize small business owners. This is another area where good records can save you from big trouble with the IRS.

To take the stress out of the bookkeeping and tax preparation for your small business, rely on Kalil & Associates in Tucson. We offer personal and business tax services with a great team ready to get your finances in order. Check us out on our website or call (520) 433-9121 for a closer look at our services.