Ongoing Tax Preparations to Start Now
Tax season might be a few months away, but preparations for your business taxes shouldn’t wait until the last minute. In fact, savvy professionals utilize ongoing tax preparations to ensure perfect compliance. Here are a few ways you can get your business finances together now to ensure you’re ready for tax time.
Keep Track of Every Expense
Every purchase or sale that your business handles needs to be documented throughout the year no matter how small. If you don’t have accounting or other software in which you document financial transactions each day, it’s highly beneficial to look into it. Accounting software like QuickBooks can offer many different financial documentation functions and can make it easier to have things organized when tax season comes around.
Maximize Your End-of-Year Deductions
Don’t forget to consider all of the following when trying to minimize your business’s yearly tax bill:
- Stock up on office furniture, new equipment, and any supplies necessary before the end of the year. Not only will this help you feel more prepared for the new year, but these purchases can also be used as a tax deduction if your small business qualifies.
- If your business had a successful year and you’re feeling generous this holiday season, you can give holiday bonuses to employees which can help you maximize your deductions.
- Have you donated to a charity this year? If not, the holiday season is the perfect time! Your business’s financial or in-kind (i.e. property or equipment) contributions to qualified charitable organizations are often tax-deductible.
Work with a Professional Business Consultant
Small business finances can be complicated to manage, especially with tax season looming in the near future. One of the best ways you can ensure your business is best prepared for tax time is to get help from a reliable and professional business accounting firm. At CFO Source, we are dedicated to providing the financial, accounting, and small business services that owners in Maryland will truly benefit from. To get reliable tax help for your small business, give us a call today.