Tax Season Done, Now What?
You have endured the tax season as a business owner and survived, congratulations! But now what? What is your next move as a business owner? Tax season should not be stressful nor surprising for a business owner. There are several ways to make tax season less stressful and minimize surprises. Tax season should be a time period in the business that does not disrupt operations. Find ways to apply these tips and the next tax season should be no more than a speed bump in the road of your small business.
Have a solid set of books that are clear, accurate and reconciled. Utilized the help of a bookkeeper or accountant depending on the size of your business to assist in keeping a solid set of books.
Utilize a financial system that meets the needs of your business. Do not rely on just Excel to be able to provide the system you need for your business books. Quickbooks is an example of a great financial system for small businesses.
Establish communication between your tax accountant and your business accountant early in the year. This will allow the opportunity to make any financial corrections needed early in the year. This will also allow to make sure quarterly tax payments are made on behalf of the business.
Be sure to complete and update information needed for tax season as necessary. For example, independent contractors need to fill out a W-9 and make sure that information is maintained in a solid financial system.
Do not wait until year end to start thinking of the next tax season. Applying improvements to your particular business books takes time and the earlier the better.