How to Prepare Your Small Business for Tax Season
Tax season is approaching, and it is a stressful time for small business owners. Gathering necessary information while keeping your customers and employees happy while dealing with day to day operations can make your head spin! Being prepared and organized can help you avoid costly mistakes. Having a plan in place and qualified people guiding you is a crucial component for preparing for tax season. RGM can help you streamline the process while gathering specific knowledge about your business operations, to produce an effective and comprehensive plan for your business growth.
Hire an Accountant
It is no easy task to prepare your business taxes yourself. It takes a great deal of time and can wind up costing you more money or the financial health of your business. The knowledge you need as a business owner is much more involved than filing your personal taxes. Hiring an accountant will eliminate stress, increase your deductions, and minimize your tax burden.
Tax laws and compliances are constantly changing. RMG Accountants and Consultants employs a staff of highly qualified professionals that know the ins and outs of tax preparation. This eases your burden and makes the process smoother and more profitable, for both you and your business. We work with a wide range of industries and business structures and are dedicated to helping your business succeed.
Plan Your Taxes Ahead
Avoid waiting until the last minute to start thinking about your taxes. Waiting until the deadline is approaching will have you scrambling, which can lead to costly mistakes. Procrastination will only add to your list of things to do. Being under pressure causes you to lose the focus you need to run your business. By consulting one of the accountants, you will have the professional guidance you need to help. They can provide you well in advance with a list of things required to make the process of tax preparation much easier. Meet with them early in the season, to get a jump start on your finances and avoid the crush of last-minute filers.
Organization is Key
To keep yourself organized this tax season it’s best to start early. Gather all your financial documents, while keeping personal and business expenses separate. This includes past tax returns, receipts, expenses, payroll and sales tax records, credit card records, invoices, bank statements, mileage records, fuel receipts, etc. Knowing what you need in advance will make the organization a smoother process. Having your financial records in order beforehand will help you to eliminate unnecessary stress while trying to prepare your taxes. Put a plan in place to start copying or scanning necessary paperwork and sorting it for ease of access during the prior year. Organize and review your credit card statements for business expenses. Scan hard to read receipts and invoices. Review accounts receivable and inventory records. Prepare and organize ahead, and the information you need will be readily available.
Maximize End of the Year Deductions
- Purchase the necessary equipment. You may be able to deduct the full purchase price of business equipment, supplies and office furniture or computers. Consult with our professionals before the year-end, for advice on what purchases will meet the criteria.
- Contributions to qualified charitable organizations can minimize your tax burden. Whether it be cash or donated equipment or property, RMG’s consultants can help determine your deduction limits based on your organization’s structure.
- Good employees are the key to a successful business. Employee bonuses are a great incentive to keep your employees happy and reward them for hard work. Bonuses given before the end of the year can also be written off.
RMG Accountants and Consultants Can Help
Tax filing and preparation can be much easier with the right guidance. At RMG, we personalize our services to your specific industry and needs, to help ease the burden at tax time. We will prepare you with expert financial guidance to file your taxes and maximize your return. RMG stays current with tax laws and compliances, along with business accounting technology, to help your business maximize profitability and efficiency. Visit our website or call (973) 755-1528 to have one of our experienced professionals help bring your business to the next level. The financial health of your business depends on it!