The tax season is fast approaching for companies of all sizes. You can save money by using our list of last-minute tax tips that are practical for small business owners. Let’s get started. Remember to consult with a professional tax advisor before making any major changes in your tax strategy.
Use a reliable software to make the filing process easier
You may be too late to contact a Certified Public Accounting or other tax professional. You’re not out of options.
The filing process is streamlined by tax software. It doesn’t offer the same level of personal attention as a professional but it does make filing easier. Software for tax preparation can:
You will be guided through the filing process.
You might miss some errors or missing information if you don’t look for them.
You can save money by increasing your deductions.
* You can file your documents online and avoid the need to send them in by mail.
Some tax software offers benefits such as online assistance from tax professionals, refund guarantee, and audit support. These features may not be universal but they are found in many leading platforms.
Are you looking for the best tax software to suit your needs? Business.org provided a detailed review on several popular platforms.
Peter Daisyme, a contributor to Entrepreneur magazine, pointed out that you can find help for filing your personal return as an business owner from a number of different providers.
Review your Available Deductions
There are many potential credits and deductions for business in the IRS tax code. Some of these deductions and credits may apply to your company, but not all.
You can review a list of the top four tax deductions that are available to small businesses. These deductions can be used by a variety of businesses and industries. Even something as simple as renting a business space or using your home office can result in tax savings.
Don’t mix personal and business expenses
This tax tip can help you save time and reduce stress. Nationwide stated that combining personal and business expenses on a tax form can cause the IRS to take a closer view at your finances. Be sure to only claim business expenses.
Convertible Assets
John Boitnott, a columnist for Inc., explained that new business owners often take their personal property and use it to start up their business. It’s a bit complicated but can be worth it. You’ll have to:
Calculate when you began using your personal property as an asset for business.
Calculate the depreciated value based on your personal use.
Calculate its fair market value, or what you would have been able to sell it for at the time that it became an asset.
It may not be worth it for a simple desk lamp or hand tool. You can save money if you only use an expensive computer, camera or similar item for your business.
Supporting your business through tax season
You may still find that tax payments are a strain on your small business, even with these tips. QuickBridge can help. We offer loans for business tax debt to help you avoid late fees and penalties. Contact us to learn more.
