Like any small business owner, we too have to pay taxes. Thankfully, we know how to get prepared for tax season. Here are three tips to follow when it comes time to pay your taxes.
- Prepare throughout the year – Rather than waiting for the deadline to hit, make sure to keep organized files throughout the year. The last thing you need is to take hours away from running your business to gather all the files and documents you need. It will also cut down significantly on any stress you feel during the process.
- Set up a retirement fund – Contributions to a 401k or and IRA are tax deferrable. That means your won’t pay taxes on those contributions until you withdraw the money. Utilizing these resources can reduce your tax burden by a significant amount.
- Use accounting software – No matter what program you decide to use, accounting software is a fast and effective way to make sure that you’re keeping track of your financial records. While this doesn’t mean you should forego the counsel of an accountant, it can often make your CPA’s life easier and reduce your bill in the process.
For more information on tax preparation for your personal or small business tax return, call us at 805-982-0827.