Top Tax Preparation Tips For Small Businesses - PowerPoint PPT Presentation

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Top Tax Preparation Tips For Small Businesses

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Okay, so small business taxes might not be a subject we want to linger on, but for those of us out there who know that this same subject is going to keep coming around, year in year out, we may as well learn what we can in order to try and simplify the process and ensure that when it is tax time, we have to spend as little time preparing for it, as possible. – PowerPoint PPT presentation

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Title: Top Tax Preparation Tips For Small Businesses


1
Top Tax Preparation Tips For Small Businesses
2
  • Okay, so small business taxes might not be a
    subject we want to linger on, but for those of us
    out there who know that this same subject is
    going to keep coming around, year in year out, we
    may as well learn what we can in order to try and
    simplify the process and ensure that when it is
    tax time, we have to spend as little time
    preparing for it, as possible.
  • So as a small business owner preparing your taxes
    for the first time, what are some of the top
    tips?

3
  • First of all, be aware of when your taxes are
    due!
  • Most owners of small businesses file their
    business tax returns along with their personal
    returns, and so it would stand to reason that the
    due date for business returns would be April
    15th, the same as the deadline for personal
    returns.

4
  • Know what type of business you own
  • If your small business is not a corporation, then
    it will either be a sole proprietorship, a
    partnership or a limited liability company.
    Whichever type of business yours is, will
    determine which forms you will need to fill out
    at tax time.

5
  • Determine what documents you will need to prepare
    your return
  • You will need to have some financial reports and
    various other documents at hand when preparing
    your tax return, which will include an end of
    year loss and profit statement and a balance
    sheet for the beginning and end of the fiscal
    year.

6
  • Remember that you will have to pay
    self-employment taxes
  • For small business owners, social security and
    Medicare taxes must be paid at a percentage of
    your earnings from self-employment.

7
  • Dont let audit traps trip you up
  • Tax return time is always made more complicated
    by tax audits, and whether you believe the
    chances of your business being in the spotlight
    or not, its wise to try and avoid making any
    mistakes that could lead to questions being asked
    at tax time. A prime example of a common slip up
    when filing tax returns, is to misclassify
    employees, something which can be seen as a
    direct attempt to avoid certain payroll taxes and
    can result in penalties. For instance,
    classifying an employee as an independent
    contractor could be red flagged by the IRS.

8
  • Apply for an automatic extension for filing your
    tax returns
  • For small business tax returns, an extension of
    six months can be applied for, making the due
    date October 15th. However, take note that this
    extension doesnt apply to the payment, only to
    the filing time, and your estimated taxes must
    still be paid by the due date in April.

9
  • For peace of mind, hire a tax return professional
  • If the many rules, regulations and worries of
    fines are taking up too much of your valuable
    time, why not give yourself the peace of mind of
    hiring a tax return professional? With their
    intimate tax preparation knowledge, you wont
    have to lose a wink of sleep over your taxes, and
    they could even end up saving you money that you
    might otherwise have lost in penalties or
    misfiled information.

10
  • At Heyer Associates, we proactively assist our
    individual and small business clients in meeting
    their goals. Our key area of focus is ensuring
    that our clients remain compliant with federal
    and state tax laws by providing them with high
    quality accounting and tax preparation in Miami.
    If you are looking for Miami accountant, Heyer
    Associates would be a right option.
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