“In this world, nothing is certain except death and taxes.” – Ben Franklin
Ben Franklin famously stated that the only things certain in life are death and taxes. But as we find ourselves in the new year, with tax time quickly approaching, you can go ahead and add stress to that list. Even though we know that tax time is coming, it can be a challenge to get ahead and really prepare. According to the 2019 Small Business Economic Trends report, taxes are the most important problem that small business owners face. Let’s take a look at some tips that will help you lessen the stress, and help you prepare.
- Find a system that works for you, and make sure that your budget, expenses and revenue are all clearly organized. This will give you an idea of what your quarterly payments might be, and let you prepare for potential deductions. As a small business owner, you might have some expenses that are partly business and partly personal, so keeping them straight will ensure that you get the best refund.
- Digital documents can be easier to organize and store. The quality of paper documents can fade over time, but a digital record ensures that data is preserved and secure. Making digital backups of paper documents is a good practice. Digital documents are also easier to share, (your accountant will thank you).
Know your deductions
- Charitable donations? Healthcare expenses? Energy credits? Make sure you know what you can deduct. Business and work expenses are commonly overlooked. If you’re working with an accountant, make sure to consult with them, because you might be surprised what you can deduct. Here is a helpful list from TurboTax of the most overlooked tax deductions.