As a small business owner, I have to take care to file my own taxes. When you are an employee of a business, your taxes are taken care of. The employer hands you the appropriate tax forms and you take them to your accountant. When you own your own business, you have to do your own filings with an accountant. This can be a little more difficult and time consuming.
Have a Knowledgeable Accountant
The first step when owning a business is to have an accountant that is knowledgeable. I use a seasoned accountant who can help me in all aspects of my business. I can contact her whenever I have a question or need assistance. You will need to work closely with your accountant to ensure that all aspects of your business are covered and that you file taxes appropriately. Feel comfortable with your accountant and talk regularly to ensure the financial side of your business.
When you own your own business, you need to keep track of everything. Any business expense you have needs to be recorded. Take note of lunches, meetings, etc. that have a cost. I like to keep a spreadsheet so that I can keep track of what I am spending. I create categories that are in line with my business and mark purchases in each category to keep track of expenditures. This helps my accountant to be able to take off deductions when I file my taxes.
In line with recording everything, I also save receipts from purchases. This way, I can go back and match up a purchase with a price amount, having the backup info if needed. I also can check to see if I may have spent money that I did not record, finding myself additional savings when I might have missed it in the past.
Set Aside Cash
Because I am filing my own taxes and do not pay in during the year to the government, I set aside cash for tax purposes. This way, if I have to pay an amount due to state or federal taxes, I have money set aside. You can speak with your accountant and see how much you should set aside or consider paying so much per quarter during the year. You have the option to pay so much each quarter and then you may owe nothing at the end of the year. This is something to consider if you do not want to have to pay a lump sum once your taxes have been filed.
Learn What You Can
Take time to learn what you can about the tax process. The more you understand, the better you will be able to understand what you need to do in regards to your business taxes. Many of the terms used can be confusing. Look for local classes or online guides that will be of benefit to you. Learn from these guides so that you can better understand the terminology and process when you file your yearly taxes.
Stay Stress Free
Tax season can be a stressful time. Try to relax. Keep track of what you need to, being a responsible business owner throughout the year. Doing so will make it easier for you once tax time comes. Being prepared means no surprises and you can rest easy knowing that you will have filed your taxes and can pay the amount specified for state or federal payments. Let your accountant be your guide and get your taxes done early so you can enjoy growing your business for the remainder of the year.