[vc_row][vc_column][vc_column_text]Are you dragging your feet when it comes to preparing your tax filings? It doesn’t need to be a stressful time. From startups to established businesses, everyone is liable. Partnering with a local CPA will guide you through the ins and outs of taxes, but here are a few guidelines to remember along the way.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]Recommended Deductibles From Your Local CPA
The IRS gives small businesses the ability to write-off certain expenses to help the financial livelihood of your company. Tax deductions lower your taxable income, meaning you will have less tax liability.
These can be anything specifically used for the business. Everything from office rent, equipment, supplies and even meals and travel can all be a deductible expenses. A knowledgeable local CPA will be able to tell you what you can and cannot deduct, keeping your taxes low.
Be sure to keep good records and receipts to hand in to your accountant. This will help make sure nothing is missed.[/vc_column_text][vc_column_text]Estimated Payments
As a small business owner you should be making tax payments to the IRS every quarter. Like most people and businesses, the IRS doesn’t want to wait until April to get all their tax money. Making quarterly payments will satisfy your obligation.
A great rule of thumb for small businesses is to set aside around 30% of your profit every quarter. Place it a different account, so when it comes time to pay your taxes, it is seamless.[/vc_column_text][vc_column_text]Extensions
If you don’t believe you are ready, there is no need to worry. You can file a request for an extension. Typically, the extension request needs to be filled out three months after your fiscal year ends. If granted, you will receive an additional six months to complete your tax filing.
You still have to pay your estimated taxes along with the application for extension, but you will get that extra time to make sure everything is correct.[/vc_column_text][vc_column_text]Taxes can be an overwhelming aspect of owning a small business. Especially when you are in the startup phase. Remember, a good majority of your expenses could qualify for deductions, you should always save a percentage of your revenue to pay quarterly taxes, and, if you are too overwhelmed, you can always apply for an extension.
The key is to partner with a small business accountant to help ensure you know all of your tax liabilities. Your local CPA will be one of your most valuable assets in your business journey.[/vc_column_text][/vc_column][/vc_row]