Staying Ahead of the Game: Why Being Prepared for Tax Season is Critical for your Business Success
Updated: 3 days ago
If you are feeling unprepared for April 18, you are not alone. Tax preparation for small business owners can be daunting with all the forms, nuances, and calculations required to accurately file your taxes.
Ceterus is here to help you skip the tax season scramble. Getting ahead of the game by staying organized can give you peace of mind with these easy tips:
Prepare & Avoid Penalties
Keeping accurate records is crucial when preparing for tax season and avoiding penalties. The IRS requires businesses to report their income and expenses accurately and truthfully. Maintain complete records of financial transactions all year. This ensures that you have everything you need to file your taxes properly and on time.
Monitor your income and expenses by keeping all receipts, invoices, and other financial documents to help you refrain from over or under-reporting your expenses. This will cut out more cause for penalties or audits.
In case the IRS does find means to audit, you may be required to provide supporting documentation for your tax returns. Having your financial records organized and easily accessible can help expedite the audit process and prevent any additional penalties or fines.
Maximize Your Deductions
Maximizing deductions and credit opportunities is an essential part of the filing process. Doing so helps business owners save big - reducing taxable income while lowering their overall tax bill.
As you may know, small business owners can deduct expenses like office supplies, travel and home office expenses. But not all deductions are created equal as some limitations exist. For example, the home office expense deduction only applies to those who use their home office exclusively for business purposes.
Our tax experts can help you identify and understand your deductions to help minimize your tax liability and potentially save you money.
Improve Cash Flow Management
Wise cash flow management is vital for the success of any business as well as preparing for tax season. When you manage your cash flow properly throughout the year, you can ensure you have the needed capital to settle your taxes when they are owed.
This means monitoring cash flow, managing inventory, and guaranteeing no overspending is taking place. Preparing this way will help you better prepare for tax season and make more informed decisions about your business.
Stay Ahead of The Game & You'll Be Filing On-Time
Filing your taxes on time is essential to the overall financial health of your small business. When you prepare successfully and file your taxes on time, you'll clearly understand your tax liability. This will allow you to plan and budget for any tax payments that may be due.
April 18 is this year’s federal tax deadline, since the 15th falls on the weekend and Monday, April 17 is a holiday in the District of Columbia. Confirm your deadline with your state in case state tax filings differ from the federal deadline. If you're cutting it close and are unsure if you can file your taxes on time, consider filing for an extension to avoid penalties.
Gain peace of mind with a financial sensei in your corner. At Ceterus, we provide clear financial and tax insights, tech-enabled bookkeeping, and tax preparation so that you can build a stronger future as a franchise or small business owner. Combining first-class technology with a team of financial experts means we can handle the tricky task of your business taxes. If you already have a trusted CPA, we can work with them to simplify your tax preparation.
We deliver consistently accurate financial insights on time - every time - so you can count on success. Get your finances on track and back to concentrating on your future as a small business owner or multi-unit franchisee. Schedule a consultation with an expert today.