Small business owners need to think about taxes all year long. Now that we’re well into the year, take some time to review how last year’s tax filing went and prepare for the tax season ahead.
Establish a system
Did you cram receipts in a drawer last year? Upload expenses to the cloud? Scan paperwork onto your hard drive? Whatever system you use, make sure it works for you and your accountant. Organization is crucial when April comes around.
Meet with Your CPA
If you had questions this year about your tax planning, preparation and filing, now is a good time to reach out and connect with your tax professional. Make a date for a tax season postmortem. If you’re not happy about how things went, this is a great time to starting looking for a new finance professional. Be sure to choose one that specializes in small business.
Create an account on IRS.gov
Having an account lets you download tax account transactions, line-by-line tax return information or wage and income for a particular tax year. The website tends to crash during heavy usage.
Consider charitable donations
Do you donate to charity? Now is a great time to start planning contributions. You’ll get a deduction and help out an organization. The IRS tax code is complex and it's important to note that not all contributions can be considered legitimate deductions. Check with your tax professional before you donate and check out this article from the Small Business Administration: How Small Businesses Can Get Tax Deductions for Charitable Giving.
Seek additional funding
During the tax season, you might have identified a number of business building initiatives. Some of those plans might require additional funds. An SBA loan is a low-cost funding option for many small business owners. With low rates and long terms, additional funds can help you grow your business. Proceeds from an SBA loan can be used for a variety of purposes. Do you need to put business-expanding strategies in place like purchasing equipment, hiring employees or paying off existing high-interest debt? Visit SmartBiz today and discover in about five minutes if you’re qualified for an SBA loan.
Looking for more information? There are resources for small businesses with assets under $10 million on the IRS tax website. Again, taxes are complex and small business owners should work with a tax professional when filing time arrives.
