Skip to main content

As a small business owner, you may have delayed filing your U.S. taxes until October 17. Well, this deadline extension is coming up soon and beyond that, your 2022 taxes are due in another six months. This shouldn’t be too much of a concern if you’re maintaining records effectively and checking out your accounting software daily. We chatted with experts on their top recommendations to help you meet the extended deadline coming up. Jaclyn Strauss, CPA says it well here, “This is your opportunity to take action on the words you mumble under your breath and implement good habits year-round.”

Stay Organized Throughout the Year

Staying organized is crucial for small businesses to manage their taxes efficiently and avoid potential legal and financial issues. To stay on top of your small business taxes, it’s important to implement effective organizational strategies.

Firstly, small business owners must keep track of all expenses and maintain accurate records to help them file their taxes accurately. This means keeping track of all receipts and invoices, categorizing expenses and income, and updating financial statements regularly. Accurate bookkeeping is essential for minimizing tax liability, and it can also help identify tax deductions and credits that you may be eligible for.

In addition, using specialized tax software can help streamline the small business tax preparation process. This software can help maximize deductions and credits, keep track of deadlines, and minimize tax liability. Using tax software can also make it easier to generate financial reports, which can help small business owners make informed decisions about their business operations.

Planning ahead for tax deadlines is also crucial to staying organized with small business taxes. Small business owners should know when their taxes are due, keep track of any tax law changes, and ensure that they have all necessary documents and information ready for filing. By planning ahead, small business owners can avoid last-minute stress and ensure accurate and timely filing.

By implementing these strategies, small business owners can stay organized throughout the year, minimize tax liability, and set themselves up for long-term success. Staying on top of small business taxes requires accurate record-keeping, specialized tax software, planning ahead for deadlines, and consulting with tax professionals to ensure compliance with tax laws and regulations.

Know Your Deductions

To minimize small business taxes and maximize profits, small business owners must know all the tax deductions they are eligible for. By identifying all available deductions, small business owners can reduce their taxable income, lower their tax bills, and save money.

One common small business deduction is the home office deduction. If you work from home, you may be eligible to deduct a portion of your home expenses, such as mortgage or rent payments, utilities, and maintenance costs. To claim this deduction, you must have a designated space in your home that is used exclusively for business purposes.

Another common small business deduction is the business vehicle deduction. If you use your vehicle for business purposes, you can deduct expenses such as gas, oil changes, and repairs. You can also deduct depreciation on your vehicle.

Small business owners can also deduct expenses related to advertising and marketing, such as website design and advertising campaigns. Office expenses, such as rent, utilities, and office supplies, are also deductible.

Additionally, you may be eligible for deductions related to travel and entertainment expenses, including airfare, hotels, meals, and entertainment expenses that are directly related to your business.

It’s essential to keep accurate records of all business expenses to claim all available deductions. This includes keeping receipts, invoices, and bank statements, and documenting the purpose of each expense.

Update Accounting Software Every Single Day

Image by Firmbee from Pixabay

Strauss says it’s important to update your accounting software daily. Generally, people will advise you to do it weekly, and for a small business just once a month. However, if you look at your accounting software as being important enough to check your emails, you’ll alleviate problems in the future. You can itemize your transactions quickly and the benefit is that you’ll have greater clarity, remembering the most recent transactions off the top of your head. This is going to alleviate a lot of tax stress. Strauss suggests this,

“While you’re in QuickBooks, Xero, or whatever program you use, “also check your profit-and-loss statement and any unpaid invoices.”

There are further benefits as well to looking at your accounting software daily. Through consistent focus, you’ll have a deeper knowledge of how your business is doing financially. There won’t be any surprises that you’ve overspent or underearned. With this daily knowledge, you may change spending habits or perform better to gain more sales. You’re going to do a better job with expenses as well.  Maintaining your software is going to allow you to be more correct in your bookkeeping.

Collect Extensive Records of Transactions

It’s not just about capturing the transactions into your accounting software, you’re also going to want to know what the transaction was for. You can write off certain expenses that have accumulated throughout the year. If you travel a lot or have driven your car locally often for business, you can get tax credits for this if you have collected the records properly. If you haven’t named what the expenditure is or you didn’t mark down essential information, you won’t be getting that tax credit. You’ll need to provide the amount, place, and date for your spending.

This is another benefit of doing a few minutes of accounting daily. If you are going to add expenses, you want as much detail as possible. We suggest that when you’re putting things down in your transactions section you use the memo area to write down the details of the transaction itself. If you do daily accounting, you can skip the next extension. It’s important to note that when you file an extension, it extends the time on paying. This isn’t true. April 15 is Tax Day in the US and after that day, interest and penalties start to incur. If you are requesting an extension, you should also include a payment.

Plan Your Taxes

Image by oskaline from Pixabay

It’s extremely stressful to try to get through your yearly accounting in a short period of time. If you complete your taxes just before the cutoff and have a massive tax bill, you don’t have time to do anything to negate it. If you keep track of your finances and accounting throughout the year, you can do things to ensure your taxes are lower. Maybe this means buying an automobile for your business or pricy computer equipment that you needed anyway. When you only look at your taxes just before they’re due, you don’t have any strategies like this to work off of. You’re simply stuck paying that large tax bill.

There’s a recommendation to meet with a tax expert. You want to have an overall, steadfast plan for your taxes. It’s also important to talk about your business structure. For example, should you be an LLC or an S Corporation? How do you maintain your accounting? Do you capitalize on your inventory efficiently? Do you know how to take advantage of the incentives that are available to you? Things like tax credits for various things like maintaining employees and contributing to green energy. What is your retirement plan usage now? These are all the fine details you’ll want to have recorded in alliance with your tax expert. Getting help from a professional, it could make April 18, 2023, a far less daunting experience for you.

Bonus: Hire a Professional 

While it’s possible to manage your small business taxes on your own, hiring a professional can be an excellent way to ensure that you’re doing everything correctly and efficiently.

A tax professional can help you identify all available tax deductions and credits, reduce your tax liability, and avoid potential legal and financial issues. They can also help you stay up-to-date with the latest tax laws and regulations, ensuring that you comply with all applicable laws.

Additionally, a tax professional can provide guidance on complex tax laws and help you make informed decisions about your business operations. They can help you choose the best entity type for your business, develop a tax planning strategy, and identify ways to minimize your tax liability.

By hiring a tax professional, you can also save time and reduce stress. Instead of spending countless hours researching tax laws and regulations, you can focus on running your business and let the professional take care of your tax preparation and filing.

Overall, hiring a tax professional can be an excellent investment for small business owners. By taking advantage of their expertise and guidance, you can minimize your tax liability, avoid potential legal and financial issues, and set your business up for long-term success.

xosotin chelseathông tin chuyển nhượngcâu lạc bộ bóng đá arsenalbóng đá atalantabundesligacầu thủ haalandUEFAevertonxosofutebol ao vivofutemaxmulticanaisonbethttps://bsport.fithttps://onbet88.ooohttps://i9bet.bizhttps://hi88.ooohttps://okvip.athttps://f8bet.athttps://fb88.cashhttps://vn88.cashhttps://shbet.atbóng đá world cupbóng đá inter milantin juventusbenzemala ligaclb leicester cityMUman citymessi lionelsalahnapolineymarpsgronaldoserie atottenhamvalenciaAS ROMALeverkusenac milanmbappenapolinewcastleaston villaliverpoolfa cupreal madridpremier leagueAjaxbao bong da247EPLbarcelonabournemouthaff cupasean footballbên lề sân cỏbáo bóng đá mớibóng đá cúp thế giớitin bóng đá ViệtUEFAbáo bóng đá việt namHuyền thoại bóng đágiải ngoại hạng anhSeagametap chi bong da the gioitin bong da lutrận đấu hôm nayviệt nam bóng đátin nong bong daBóng đá nữthể thao 7m24h bóng đábóng đá hôm naythe thao ngoai hang anhtin nhanh bóng đáphòng thay đồ bóng đábóng đá phủikèo nhà cái onbetbóng đá lu 2thông tin phòng thay đồthe thao vuaapp đánh lô đềdudoanxosoxổ số giải đặc biệthôm nay xổ sốkèo đẹp hôm nayketquaxosokq xskqxsmnsoi cầu ba miềnsoi cau thong kesxkt hôm naythế giới xổ sốxổ số 24hxo.soxoso3mienxo so ba mienxoso dac bietxosodientoanxổ số dự đoánvé số chiều xổxoso ket quaxosokienthietxoso kq hôm nayxoso ktxổ số megaxổ số mới nhất hôm nayxoso truc tiepxoso ViệtSX3MIENxs dự đoánxs mien bac hom nayxs miên namxsmientrungxsmn thu 7con số may mắn hôm nayKQXS 3 miền Bắc Trung Nam Nhanhdự đoán xổ số 3 miềndò vé sốdu doan xo so hom nayket qua xo xoket qua xo so.vntrúng thưởng xo sokq xoso trực tiếpket qua xskqxs 247số miền nams0x0 mienbacxosobamien hôm naysố đẹp hôm naysố đẹp trực tuyếnnuôi số đẹpxo so hom quaxoso ketquaxstruc tiep hom nayxổ số kiến thiết trực tiếpxổ số kq hôm nayso xo kq trực tuyenkết quả xổ số miền bắc trực tiếpxo so miền namxổ số miền nam trực tiếptrực tiếp xổ số hôm nayket wa xsKQ XOSOxoso onlinexo so truc tiep hom nayxsttso mien bac trong ngàyKQXS3Msố so mien bacdu doan xo so onlinedu doan cau loxổ số kenokqxs vnKQXOSOKQXS hôm naytrực tiếp kết quả xổ số ba miềncap lo dep nhat hom naysoi cầu chuẩn hôm nayso ket qua xo soXem kết quả xổ số nhanh nhấtSX3MIENXSMB chủ nhậtKQXSMNkết quả mở giải trực tuyếnGiờ vàng chốt số OnlineĐánh Đề Con Gìdò số miền namdò vé số hôm nayso mo so debach thủ lô đẹp nhất hôm naycầu đề hôm naykết quả xổ số kiến thiết toàn quốccau dep 88xsmb rong bach kimket qua xs 2023dự đoán xổ số hàng ngàyBạch thủ đề miền BắcSoi Cầu MB thần tàisoi cau vip 247soi cầu tốtsoi cầu miễn phísoi cau mb vipxsmb hom nayxs vietlottxsmn hôm naycầu lô đẹpthống kê lô kép xổ số miền Bắcquay thử xsmnxổ số thần tàiQuay thử XSMTxổ số chiều nayxo so mien nam hom nayweb đánh lô đề trực tuyến uy tínKQXS hôm nayxsmb ngày hôm nayXSMT chủ nhậtxổ số Power 6/55KQXS A trúng roycao thủ chốt sốbảng xổ số đặc biệtsoi cầu 247 vipsoi cầu wap 666Soi cầu miễn phí 888 VIPSoi Cau Chuan MBđộc thủ desố miền bắcthần tài cho sốKết quả xổ số thần tàiXem trực tiếp xổ sốXIN SỐ THẦN TÀI THỔ ĐỊACầu lô số đẹplô đẹp vip 24hsoi cầu miễn phí 888xổ số kiến thiết chiều nayXSMN thứ 7 hàng tuầnKết quả Xổ số Hồ Chí Minhnhà cái xổ số Việt NamXổ Số Đại PhátXổ số mới nhất Hôm Nayso xo mb hom nayxxmb88quay thu mbXo so Minh ChinhXS Minh Ngọc trực tiếp hôm nayXSMN 88XSTDxs than taixổ số UY TIN NHẤTxs vietlott 88SOI CẦU SIÊU CHUẨNSoiCauVietlô đẹp hôm nay vipket qua so xo hom naykqxsmb 30 ngàydự đoán xổ số 3 miềnSoi cầu 3 càng chuẩn xácbạch thủ lônuoi lo chuanbắt lô chuẩn theo ngàykq xo-solô 3 càngnuôi lô đề siêu vipcầu Lô Xiên XSMBđề về bao nhiêuSoi cầu x3xổ số kiến thiết ngày hôm nayquay thử xsmttruc tiep kết quả sxmntrực tiếp miền bắckết quả xổ số chấm vnbảng xs đặc biệt năm 2023soi cau xsmbxổ số hà nội hôm naysxmtxsmt hôm nayxs truc tiep mbketqua xo so onlinekqxs onlinexo số hôm nayXS3MTin xs hôm nayxsmn thu2XSMN hom nayxổ số miền bắc trực tiếp hôm naySO XOxsmbsxmn hôm nay188betlink188 xo sosoi cầu vip 88lô tô việtsoi lô việtXS247xs ba miềnchốt lô đẹp nhất hôm naychốt số xsmbCHƠI LÔ TÔsoi cau mn hom naychốt lô chuẩndu doan sxmtdự đoán xổ số onlinerồng bạch kim chốt 3 càng miễn phí hôm naythống kê lô gan miền bắcdàn đề lôCầu Kèo Đặc Biệtchốt cầu may mắnkết quả xổ số miền bắc hômSoi cầu vàng 777thẻ bài onlinedu doan mn 888soi cầu miền nam vipsoi cầu mt vipdàn de hôm nay7 cao thủ chốt sốsoi cau mien phi 7777 cao thủ chốt số nức tiếng3 càng miền bắcrồng bạch kim 777dàn de bất bạion newsddxsmn188betw88w88789bettf88sin88suvipsunwintf88five8812betsv88vn88Top 10 nhà cái uy tínsky88iwinlucky88nhacaisin88oxbetm88vn88w88789betiwinf8betrio66rio66lucky88oxbetvn88188bet789betMay-88five88one88sin88bk88xbetoxbetMU88188BETSV88RIO66ONBET88188betM88M88SV88Jun-68Jun-88one88iwinv9betw388OXBETw388w388onbetonbetonbetonbet88onbet88onbet88onbet88onbetonbetonbetonbetqh88mu88Nhà cái uy tínpog79vp777vp777vipbetvipbetuk88uk88typhu88typhu88tk88tk88sm66sm66me88me888live8live8livesm66me88win798livesm66me88win79pog79pog79vp777vp777uk88uk88tk88tk88luck8luck8kingbet86kingbet86k188k188hr99hr99123b8xbetvnvipbetsv66zbettaisunwin-vntyphu88vn138vwinvwinvi68ee881xbetrio66zbetvn138i9betvipfi88clubcf68onbet88ee88typhu88onbetonbetkhuyenmai12bet-moblie12betmoblietaimienphi247vi68clupcf68clupvipbeti9betqh88onb123onbefsoi cầunổ hũbắn cáđá gàđá gàgame bàicasinosoi cầuxóc đĩagame bàigiải mã giấc mơbầu cuaslot gamecasinonổ hủdàn đềBắn cácasinodàn đềnổ hũtài xỉuslot gamecasinobắn cáđá gàgame bàithể thaogame bàisoi cầukqsssoi cầucờ tướngbắn cágame bàixóc đĩaAG百家乐AG百家乐AG真人AG真人爱游戏华体会华体会im体育kok体育开云体育开云体育开云体育乐鱼体育乐鱼体育欧宝体育ob体育亚博体育亚博体育亚博体育亚博体育亚博体育亚博体育开云体育开云体育棋牌棋牌沙巴体育买球平台新葡京娱乐开云体育mu88qh88