Every year it seems as though the scramble around tax time is inevitable. But the tax experts at Barton, Walter & Krier are here to help. We’ve got the inside scoop on things you can do throughout the year to ensure you’re prepared, saving you time, money, and potential headaches. Keep reading to learn a few year-round tax tips to help you plan ahead for tax season.
Because of additional tax obligations, tax season looks a bit different for businesses than for individuals. Unless filing for an extension, individual tax returns are due on April 15. Depending on your business type and the tax year, the due date for business taxes can vary.
Additionally and for businesses required to pay them, quarterly estimated taxes are, as the name implies, due each quarter — on the 15th of April, June, and September as well as January of the following year. Companies with employees are also required to file local, state, and federal payroll taxes all year long.
Selecting the right structure for your business is important to avoid overpaying taxes.
Among other aspects, you’ll want to consider tax rates, liability protection, and chain of command when choosing an entity. From a C corporation to a sole proprietorship and everything in between, we can help you understand the advantages and tax benefits for each classification and help you determine the proper legal structure for your business.
One of the most important things you can do throughout the year to prepare for tax time is to maintain accurate records. This will both help keep your business running smoothly and generate a reliable tax return.
Simple and easy-to-use accounting software can help keep track of revenue and expenses throughout the year. Or you can also hire a trusted accounting firm for your recordkeeping needs. Having all your business’s financial records up to date and organized will help your tax preparer to process your return more quickly and accurately.
As you maintain accurate records, be sure to keep business and personal expenses separate. Dividing up expenses as they’re incurred will save a lot of time as tax season approaches. What’s more, you could potentially overlook deductions, so it’s best to keep things separate from the start. Set up a business bank account and use it solely for business purposes.
Additionally, sorting your business expenses can save time when determining deductions. Your business’s deductible expenses may vary, but having those costs organized ahead of time will help your tax professional determine which expenses apply to your industry.
If your company has employees, you want to be sure your payroll records are accurate and that you’re withholding income taxes, Social Security, and Medicare taxes. As previously stated, payroll taxes are usually filed quarterly. If you’re unable to keep up with calculations and estimations, consider looking for a reliable firm to help with bookkeeping and payroll.
These are just some of the year-round tax tips to help you plan ahead for tax season. The professional team at Barton, Walter & Krier has more ideas, especially for business owners, on what you can do throughout the year to stay organized and reduce the stress out of filing your return. If you want to learn more or have questions specific to your industry, we’re here to help. Contact us today.