There are over 28 million small businesses in the USA, and tax season creates a lot of additional stress on top of trying to run your business and keeping it afloat. Outsourced accounting services are one of the best options for a small business, as it allows the most qualified and experienced experts to handle this maze of tax laws and requirements on your behalf, without you having to pay a full-time tax accountant.
Steps to take
You don’t have to let tax season wear you down, especially when it comes time to figure out exactly what deductions you can claim. There are steps you can take to ensure a smooth tax filing with the help of your tax accountant.
1.) Get a tax accountant
Retain the services of a tax accountant near you that specializes in small business accounting. They will know and understand the complexities of local and federal laws, which can be overwhelming to try to learn for the average business owner.
Let your tax agent determine the best course of action for your annual tax filing. They know the rules and requirements and can help you maximize your deductions without triggering an audit.
2.) Have the right business structure
Ensure that you are using the optimal form of business structure for both growth and the lowest tax liability. This may mean you are registered as a sole proprietorship, a partnership, an LLC, or a corporation. Your tax accountant can also ensure that you are using the proper business structure.
3.) Strategize your taxes and business plan
Develop a tax strategy as part of your business plan and keep it updated. Check on your strategy and achievements regularly with your accountant to make sure you are still on the right track.
4.) Stay organized
Keep your business income and expenses organized –invest in a scanning app to deal with small receipts immediately so that you always have accurate records. Having everything recorded, sorted, and ready by the time tax filing is required will prevent a lot of stress and ensure that you are not missing any expenses that could have been claimed.
Examples of tax deductions
Business expense write-offs can be very ambiguous and should be checked by your tax agent; however, some common deductions include:
● Employee salaries and benefits
● Work Opportunity Tax Credit (e.g., hiring veterans)
● Payroll Expenses
● Licenses and Permits
● Cost of Goods Sold
● Marketing and Promotions
These are just a few examples; the specifics of each of these will depend on the type of business entity you run and other qualifying factors, which your tax agent can help clarify. Having a complete list on-hand can help you, prepare and track your deductions throughout the year.
Contact Caro and Associates today to get the financial help you need to grow your small business and to maximize your tax deductions, via our website or by phone at (206)-497-0671. Caro and Associates are based in Renton and have served the Pacific North West business communities professionally for many years.
QuickBooks can help your optometry practice save time and work smarter by making bookkeeping and report generation easy.
Consider outsourcing your bookkeeping, payroll, or tax tasks to improve your practice’s efficiency and keep your employees happy.
It’s back-to-school season, and that typically means buying a lot of stuff to prepare kids for the start of a new academic year. While 2020 may look a bit differently (some schools may enact online learning and/or hybrid models), kids will still need a few essentials—from backpacks to electronics. Here are a few tips to keep your back-to-school shopping within your budget.