When tax season begins, every business owner begins to panic. Did I track all my spending? Have I saved all my receipts? Tax season can be a very stressful time, leading to panic, anxiety and a host of other emotions. Because I own my own business, I know all too well the fears for the tax season. It is essential that I follow all the appropriate steps to ensure my taxes are prepared correctly and pay any taxes needed to stay in good standing as a proud business owner.
I love my accountant. She is wonderful and truly keeps track of every aspect of my business. But as tax season rolls around I start to get nervous. What if my accountant forgets a key detail? What if my tax forms are filed wrong? These are worries that I have, even though they are unfounded. I have to tell myself that I trust my accountant and that she will do everything right to provide me with a successful tax filing.
Every business owner knows that you must keep track of purchases. From the smallest product purchase to major purchases like laptops and furniture, most purchases can be deducted. You must keep receipts for these purchases to ensure that you can take off money that you have earned. This helps you to lower your revenues and to pay less for your business taxes. I worry each year that I will forget receipts or lose some that will result in me paying more for my tax debt.
To avoid such worry, I keep a folder where I can place receipts from purchases. This way, every time I make a business purchase, I have somewhere to keep the info. I can easily go back and review the receipt and take note during the tax season.
I also worry about filing incorrectly. Many of the terms used in tax filings I do not understand. Thankfully, I can rely on my accountant but I still worry that I will file incorrectly somehow. The reputation and livelihood of my business is dependent on the taxes so it makes me stress that something will be done wrong, leaving me with issues in regards to my taxes.
Missing the April Deadline
We all know the dreaded April deadline when taxes must be filed. I always try to file around February but sometimes my accountant is busy and my appointment can be pushed back. This is when I begin to worry that my taxes won’t be filed in time and I will miss the deadline. I have never missed it but do not want to face any penalties for filing late.
Forgetting to Pay Taxes
Once my taxes have been filed and I need to pay, I want to make sure I pay on time. I usually pay right away to ensure that the debt is paid and I can focus on my business. However, sometimes I wait a few days to pay the tax. This is when I start to panic. I do not want to forget to pay what I owe. A big fear I have is that I will forget to pay and then owe even more money to the government.
Tax season is a serious and usually stressful time for business owners. But being organized can help you alleviate the majority of the stress associated with taxes. Take time to streamline your business to ensure that you keep track of all expenses and other items associated with your business and tax time. This way, you are prepared and ready to tackle your business taxes in a timely and professional manner.