Essential Tax Tips for Small Business Owners in 2024
The daily hustle of earning money and supporting oneself and family is never-ending. No matter in which field you are in, if you are a business owner, you know the challenges entrepreneurs face daily.
It takes work to attract and retain employees and file tax returns. When tax season arrives, it feels more like a never-ending pinch.
But what if we tell you that taxes should be complicated and easy for you if you are already prepared and use the right tools?
Tax season can be easily navigated with proper planning and organisation. It is essential to hire a personal tax accountant who can help you determine the best business strategy, ensure compliance, and consult with a tax professional before making important decisions.
This blog post will provide expert tax tips from Armando Cirillo & Co. to help you maximise your small business deductions.
Let’s get started.
Tips to follow as an SBO to prepare yourself for the big filling
Want to know the ideal time to learn about some basic tips that can save you time, energy, and money, too? Well, here are some tips that, if you follow them diligently, can help you prepare for the upcoming tax year.
These tips help simplify the process and ensure you are prepared for the upcoming tax year. They can also help you optimise your tax situation and avoid common errors, making your tax journey easier and more efficient.
Can’t wait enough? Dive now!
- Gather your documents:
Having your tax documents in order is essential for a smooth tax season. Keep detailed records of income, expenses, purchases, and assets. Maintain a paper trail for deductions like travel and entertainment. For business owners with employees, keep track of payroll records and employment taxes. You must organise and store these documents in a safe place.
2. Understand tax deductions and credits:
Tax deductions and credits can reduce your business’s taxable income and the amount of tax you owe. Knowing which expenses can be deducted can lower your taxable profit, while tax credits provide direct relief on your tax bill. So, you must stay updated on changes in deductions and credits to maximise savings.
3. Stay informed about tax law changes:
You must stay informed about changes in tax laws to avoid compliance issues and take advantage of new benefits. Simple steps like subscribing to tax newsletters, attending webinars, or checking the IRS website regularly can help. Thus, using pre-accounting solutions can make adapting to changes easier by providing real-time updates and ensuring your financial records align with the latest laws. These solutions make it simple to adjust your strategies and stay compliant without requiring manual tracking of changes.
4. Take the help of a professional:
If you need help knowing where to start or where to go, it’s time to take the help of an expert like Armando Cirillo & Co. Small business owners may need help finding obscure deductions, optimising profits, or staying updated on tax laws. So, when hiring a professional, you must check their credentials and ask about their experience. While hiring a financial adviser or accountant can be costly, the benefits of their expertise in saving time, reducing stress, and maximising tax relief are usually worth it.
5. Keep your records nice and tidy:
Maintaining organised records is essential for small businesses, especially when it comes to filing taxes. Keeping detailed documents of income, expenses and receipts crucial for accurately reporting and substantiating documents.
6. Separate your business and personal expenses:
To avoid issues with the IRS, you must separate your business expenses from your costs. You can do this by having dedicated bank accounts and credit cards for your business transactions. This will help you maintain a clear financial record and minimise the risk of audits or misunderstandings with tax authorities. Mixing personal records and business expenses could lead to scrutiny and examination of your accounts by the IRS.
The Takeaway
If you want to learn more about such tax tips and how having a small business accountant can resolve many of your issues, visit Armando Cirillo & Co. today. Their experts are professional and experienced in their field and would be happy to help you.
