If you own a small business, you are probably already familiar with how difficult it can be to file your taxes....and how challenging it might be if you avoid doing so or if errors are made. However, it doesn't have to be as hard as it seems to be every year and there are several things you can do to simplify that process. As a result, it's a good idea for every responsible small business owner to be aware of the advice shared below.
Store Everything Electronically Whenever Possible
In today's world, it seems as if you cannot turn around without seeing someone's selfie or an emailed photo of your best friend from high school's new dog. However, many people are still storing receipts, bills and other potentially deductible documents in shoeboxes, files, and similar locations. Whether it is a receipt for the purchase of pens and printer ink or it's evidence that you needed to replace the computer system in its entirety, maintaining efficient use of that paperwork is essential.
Instead, it's best to get in the habit of storing everything you accrue throughout the year. Doing so can be as simple as snapping a photo and emailing it to your business account or as complex as uploading it to your computer and backup storage. This might also be a good time to make use of the Cloud, if warranted. Therefore, it's easy to see that you don't have to be a high-tech genius in order to be able to better access your information when it comes to time to file your taxes.
Make Efficient Use Of Your Online Banking
If you have just been on the status of payments and deposits when logging into your bank account, you haven't been making the best use of that service. For example, many banks now provide the opportunity for online customers to indicate if a specific item is tax deductible. When that option is consistently coupled with better record keeping, as previously discussed, there is almost no chance of missing an item that could then be used as a tax deduction.
In addition, if you were to accidentally lose a receipt that needed to be deducted, it will be easier to find it when you know exactly how much it was for. If the numbers provided by your bank at the year do not match the results from your own records, you can comb through the documents in question until you find the error. The same is true if a number is accidentally transposed or skipped when the numbers were first put into the system.
In conclusion, tax preparation for small business can be quite difficult and even a small error could ultimately prove to be financially problematic. Therefore, it's best to be aware of the advice shared in the above sections. For more information, contact companies like The Callen Accounting Group, PLLC.