If you are a small business owner, it is likely that you will welcome as many tax tips as possible. Here at Kilcoyne Accountants, we have compiled a list of the top 10 best tax tips for small business owners.
Tax Tips for Small Business Owners
1. Ensure that separate records are maintained for employees as well as contractors.
2. Try to use software systems for tax accounting. It will help you in the long run with tax rule changes and much more.
3. If you are leaving the tax accounting job to a tax accountant, it is crucial that you know of their experiences with taxes. It will ensure that they can relate to your business specifically.
4. Anything that is bought (vehicles, equipment, and machines), make sure to keep records of them. For example, receipts and serial numbers.
5. Be educated on the precise and correct way of estimating your taxes. It is recommended to hire a tax accountant if you are a small business owner.
6. Determine an appropriate fiscal year so that you can plan better for tax time: A fiscal year refers to an accounting year that does not end on December 31.
7. Tax records should be kept for a minimum of three years – unless related to property and depreciation. In that case, tax records should be kept for three years past the time ownership ends.
8. Keep detailed records on business vehicles’ usage – both on the job and off.
9. If you are not able to pay taxes owed to tax agencies, contact your tax professional right away. There are appropriate steps that can be taken and ignoring it only makes it worse.
10. If you are paid in cash – that payment is taxable.
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