The most common tax challenges faced by businesses
While many individual taxpayers might look forward to getting income tax returns, most business owners actually dread this time of year. Tax season represents a time when business owners have to spend a lot of time working with their accountants so that their business tax filings are accurate and made in a timely manner. Northeastern Online offers various classes to business owners that can help them reduce their tax liabilities and avoid being audited by the IRS. Being a business owner means that you are going to tackle challenges on a daily basis, but filing your business taxes can be one of the simpler tasks that you perform.
Maintaining Organized Tax Records
Every sale, purchase, expense, invoice, and investment that is made in the name of your business has to be accounted for. Even if you run a business that mainly operates in cash, there needs to be documentation to support where the money is going and coming from. The main reason that business owners get flustered around tax time is that their companies are largely unorganized. If you don’t know what your company’s current cash flow is, stop what you’re doing and go over your business records.
Filing Business Taxes by the Deadline Dates
The deadline date for filing federal business taxes might fluctuate a little from year to year but consider the fact that you’ve basically got 12 calendar months to prepare. At Northeastern University, you can learn how to do your business taxes or even learn how to run an entire business. To ensure that you are able to send your business tax return off by the deadline date, don’t wait until the night before to get started. Ideally, you should start on your business tax forms as early as January 1st every year.
Applying All Available Business Tax Write-Offs
Did you know that every mile that you drive to go to pick up supplies, meet with customers, or even travel to and from your business is a tax-deductible expense? The trouble about business tax write-offs is that you have to know about them early on so that you are able to have all pertinent documentation. In other words, you can’t just guess or fluff numbers when it comes to documenting business tax write-offs. So really, you need to be aware of what kinds of expenses you need to maintain records of for tax purposes. This could mean that you need to throw the majority of your receipts into a shoebox for later inspection, or you could scan and save all of your business receipts if you want better organization.
On top of running a business, you have to also be on top of all accounts payable, expenses and other operational costs. Tax time can either be an uneventful duty that you have to perform as a business owner each year, or you can wait until the last minute and be up to your ears in documents, receipts, and paperwork. Filing business taxes is only challenging if you don’t prepare to file from day one.