Tax Filing Tips for Small Business Owners
Tax season can be a stressful time for any taxpayer, but this is especially true for small business owners, as the filing process is notoriously complex. However, those who keep the following tips in mind may be able to avoid some of the more time-consuming and expensive aspects of filing taxes. To learn more about what you can do as a small business owner to save both time and money during tax season, please contact an experienced tax attorney who is well-versed in both state and federal tax law.
Keeping Personal and Business Records Separate
It can be difficult when running a small business to keep personal financial records separate from documentation related to operating a business. However, ensuring that these funds and their records are not commingled is critical when it comes time to pay taxes, as the IRS will require documentation that supports business expenses in the event of an audit. Further, the delays caused when attempting to separate expenses can quickly lead to hefty fees for filing late.
Part of keeping financial records separate from personal records is staying organized, as implementing a few practices at an early stage can help keep business owners from scrambling to find documentation at the last minute. For example, using a filing system to separate business records, such as deposit slips and receipts by month can go a long way towards simplifying the filing process. Going over the accounts and records at least once a month will also help give you a better chance of avoiding an error.
Expenses incurred by a business are often tax deductible if they qualify as either necessary or ordinary. Small business owners may also qualify for a home office deduction if they use a part of their house to run their company, or the auto expense deduction, which applies to taxpayers who use their car for business purposes. Eligible parties could deduct the cost of insurance, repairs, and gas, although if the car is also used for personal purposes, it will be necessary to calculate the percentage of time that it was utilized for business purposes. Business owners can even deduct the cost of meals, as long as they were business-related.
Filing electronically is one of the best ways to make sure that your tax return is filed on time and many software programs even allow taxpayers to file for free. Once a return is received and processed by the IRS, the taxpayer can receive confirmation immediately online, rather than waiting on the mail system to hear whether the return was received. Tax refunds are also usually processed and sent more quickly when taxes are filed online.
Contact a Dedicated Orlando Tax Attorney Today
Filing your taxes does not have to be stressful and time-consuming, especially if you seek the advice of a professional who has the resources and experience to help you save both time and money, and avoid penalties. To schedule a one-on-one consultation with dedicated Florida tax attorney Ronald Cutler, P.A., please call 386-490-9949 today.