There is no greater joy than owning and operating your own business. You look over your record-keeping and have a sense of well-deserved pride in your accomplishments of the past year. Then you remember tax season is looming over you like a dark shadow and a knot of worry forms in the pit of your stomach.
Small and Medium-sized are both the lifeblood of our economy and a crucial part of the American Dream. However, most of the industrious people who run these companies have neither the time nor proper understanding of the tax code to correctly prepare their business taxes even with the assistance of software.
It might be tempting to shelve tax-related issues until April, but this is highly unwise. It is smart to have the right tax professional by your side from the beginning to look out for all the unexpected issues that often plague small business accounting.
Do you properly understand how to handle your cash flow? Are you going to pay taxes purely based on
What is available in your checking account? Many business owners do not realize that their available cash is not the same as the company’s net profit.
Are you sure that you have chosen the proper business organization? The type of organization has a strong bearing on your tax structure and you should make sure your organization utilizes the best tax structure for your business needs. Having a small business tax professional look over the Consumer Price Index is a good way to understand your business should be properly structured.
Are you confident that your independent contractors have not become employees during the tax year? Did you provide them with the right forms? It is important for businesses to understand how to properly document all those who have done work for them and the Internal Revenue Service or IRS regulations on such matters can be very perplexing.
Have you, the owner, been taking money out of the business to pay personal or professional expenses?
Do you know what to call the money you have taken out? Are you drawing a salary?
Small business accounting can be quite complex and confusing. The wrong guess to any of these tough questions can land you into a lot of trouble with the IRS. This is why having the proper small business consultant is crucial to protecting your business from unnecessary taxes and fines.
Tax-Related Issues Do Not Begin During Tax Season.
Tax saving opportunities are available from January 1st to December 31st and are just not limited to the tax season. It is important that you have someone that can advise you in real-time so you make the proper decisions through each crucial step of building your business.
Someone who waits till tax season to seek advice will realize that most of the stronger options are no longer available to them. Every business transaction made by the business owner will have a powerful impact on their tax liability. A solid tax professional will help guide your business through every crucial moment which allows for more financial security and stability. They will make sure that you are not sidelined with incorrect information that will lead to bad business tax decisions.
A tax professional can offer the following benefits to a small or medium-sized business:
- Tax professionals will study your business structure and explain to you what is the best structure for your particular businesses’ tax liability. They will help you alter the structure if this is the best course of action.
- Tax professionals will examine how your business is paying and reporting independent contractors and make sure that you are compliant in this area with all IRS regulations to avoid harsh penalties.
- They can look at past tax returns for deductions that have been missed or valuable credits that are available to the business.
- The tax professional can point out all manner of compliance issues that can be immediately corrected throughout the year so you have the strongest confidence going forward with all your regular business transactions.
Remember that every business is different and there is never going to a one-size-fits-all solution to tax questions and problems. This is why it is vital to have a tax professional on your side all year round to guide you through an often confusing tax code.
The tax professional will protect your business from liability and make sure you are in compliance with all major and minor regulations. They understand as a busy owner of a small to medium-sized business, you already have enough on your plate without also worrying about the mind-numbing minutiae of your business tax scheme. Let a business tax professional help you to greater business success and financial stability.
Business taxes are determined by net income. This is when you subtract business expenses from gross revenues. Having an online accounting system automatically keeps track of your figures. If you use an online accounting system and you’ve entered all income and expenses, the system will automatically provide you with a gross profit figure. Those that use spreadsheets, please take the time to add up the numbers so you can forecast what you will need to owe in taxes for the following year.
Getting A Tax Resale Certification Is One Of The Best Things You Can Do As An Entrepreneur
As a self-employed person, getting a tax resale certificate can really save you money on taxes.
In short, a tax retail certificate allows you not to pay sales tax on items that you plan to resell. This can also apply to supplies that are going to be used in products that you will resell, such as wood for a cabinet.
However, the process can be difficult and the rules are different for each state. That is why TaxResaleCertificate should do all the hard work for you. We can make sure that you get all the advantages of a tax resale certificate without having to deal with the hassle of government red tape. Let us handle the hard stuff so you can proceed to run your business with confidence. Make sure you check out our second blog in this series so you can learn even more valuable information about tax resale certificates.