It’s the one day that comes year after year that few business owners really get excited about. It’s Tax Day. No business owner wants to pay more taxes than necessary or miss out on deductions that could lower their tax liability. The good news is, with a little preparation, tax day doesn’t have to be a drag.
Whether you’re a fan of tax season or not, my guess is you’re not, the tips below will help you create a system that saves you time and money and keeps you from pulling out your hair!
1. Hire a professional: Find a tax professional that will help you do more than prepare your taxes, find someone that will work to understand your business, offer advice and suggestions to minimize your tax liability.
2. Review and monitor your expenses, monthly: One of the best things you can do to grow your business is know your numbers. Know what’s coming in as well as what’s going out. One resource that will help organize and track your business expenses is Quickbooks.
3. Keep your invoices, receipts, bank statements and tax documents in one place: I love the simplicity that online tools provide but it doesn’t hurt to have a hard copy as well. If something gets miscoded or a charge appears that you want to research you can do that. You may not like the idea of keeping a paper file but what happens if your computer crashes or everything that was stored on the Cloud gets lost?
4. Check your business structure: As your business grows, your business structure may need to change in order to minimize your tax exposure. Small business development centers can offer guidance and support in this area. However, if you’re working with a good tax professional they’ll offer guidance and support in this area as well. And it doesn’t hurt to consult a business attorney.
The reality is you don’t have to be a genius in every area of your business. You just need simple tools to help manage your daily operations, minimize your tax exposure and boost your profits. It may take some time to develop the habit of monitoring your expenses but utilizing a system like Quickbooks will come in handy… and keep you from losing your hair!