Posted on: 4 April 2017
When you start a business, there are many things that you need to consider, but your taxes need to be high on your list of priorities. When you own a business, you are required to pay different taxes than you do as a private individual. It is best to meet with a tax preparation service before you even open the doors to your business to ensure that you are properly prepared. The guide below walks you through a few ways the tax consultant can help you properly prepare for tax season when you own a business.
Explain the Taxes Associated with Small Businesses
The first thing that the consultant will be able to do is let you know what taxes are associated with your specific business. Taxes are not the same across the board for all businesses. Certain businesses get taxed on one thing while other businesses are taxed for something completely different. Knowing what things you will be taxed for in advance will help you properly prepare for the taxes you will be assessed.
Explain What Deductions Are Available
The consultant will also be able to explain what deductions are available to you as a small business owner. He or she will be able to advise you on what steps you need to take to ensure that you have the best chance of getting all of the deductions that are available. Many deductions need to be proven through receipts and proper tracking is essential. The consultant will be able to provide you with tips to ensure that you are able to properly organize your information so that you can easily have it available if you are audited.
Learn How to Properly Tax Employee Pay Checks
If you have never owned a business before, there is a good chance that you do not know the first thing about setting up a payroll with the IRS. The consultant will be able to help you establish proper payroll procedures with the IRS so that all of your employees are being properly taxed when you pay them. This can save you and your employees a lot of hassle in the long run.
It is important to meet with the consultant quarterly to ensure that everything is being done properly. If you wait until the last minute to meet with him or her and have made any mistakes, it can be very difficult to fix them.Share