If you are an owner of small or medium business, you must be breathing a big sigh of relief every year once the month of April passes as you have paid all your taxes. But the bitter fact is that this relief is only for a year as the tax season is going to come back again next year, and you have to again go through all the struggles to meet the deadline of filing your tax return well in advance or on time.
You can alleviate the pains associated with the tax season every year if you start sparing a little of your time in preparing yourself for the next year’s tax season from this very moment.
You must have noticed that every successful sports team enters the arena with a proper game plan in their mind. They are prepared to face any type of situation that might arise during the game. They have different game plans to tackle many types of situations.
In the same way, you should also be prepared well in advance to face any type of difficult situation related to the tax season that may occur without any warning during that period which is full of stress and pressure. If you are well prepared to face any type of situation, you would emerge victorious at the end of the day as you have the resolution for any situation.
Here we would discuss some of the basics related to filing of taxes that remain same every year. By following these tax filing related basics you would let the storm pass without affecting your mental peace. Here are the tips to get those tax filing related basics right.
Stay informed about your income projection
Just like you analyse the situation before making a plan for any situation that you are going to face in the near future. The first stage in the preparation for the tax season too involves study and analysis of the situation. For a person who is getting a fixed amount of salary, it is easy to predict his annual hike in salary. However, in the case of small and medium businesses the situation is totally different.
No doubt that it is a bit challenging for business owners to project their revenue for the next year, but still you can calculate and get a rough idea about your business’ income projection. If are aware of the income projection then it becomes easier for you know about the structure of tax. Once you are informed about the tax structure, it becomes easy for you to plan how you can save taxes and save yourself from other deductions etc.
In this way you are saved from running here and there at the last hour of tax season.
Keep a tab on your finance
It is a very difficult and time consuming task to maintain the records of all your annual financial transactions along with the invoices. Therefore, it is recommended to take the help of accounting software like QuickBooks to perform this task for your business without any hassle or chances of error.
The accounting software like QuickBooks can automatically maintain and manage a long lasting record of all your business’ financial transactions. It would be a wise investment to adopt a suitable accounting software for your business well in advance before waiting for the tax deadline.
If you will wait till the last minute to select the accounting software for your business then you would not be able to enjoy all the benefits of the automated record management feature. So it would be nice decision if you choose and buy the right accounting software well in advance and get it integrated with the bank accounts associated with your business. This will facilitate the easy streamlining of keeping a tab on your finances. In other words, a suitable accounting software will take away all your stress and worries during the tax season.
Discuss with your Certified Public Accountant (CPA)
You must have taken the assistance of your CPA this year or the last year while filing your business tax returns. However, during that time you might be going through a very stressful phase as you have a deadline to meet. If you want to take the assistance of any particular CPA next year also then it would be a wise decision if invite him for an informal meeting to your office.
In this way, when you sit across the table in a cool and stress-free environment, you can discuss about the future. Before starting the conversation first of all thank him for the services rendered by him last year and then gradually move towards your future plans and expectations. With this, you both would benefit as you would come to know about his professional knowledge and experience and he in turn would get a better idea about your business requirements.
Keep yourself abreast of the latest news and tips related to tax
It is always a best practice to keep yourself abreast of the latest developments taking place around you. As a businessman and a law abiding citizen, you should keep a tab on all the news related to taxation laws and regulations. As every year government makes some minor or major changes in the rules and regulations related to taxation, it would be better if you are aware of all the developments.
You can take the help of newspapers, online resources, government websites, etc. to know about the latest developments in the taxation rules and regulations. This will help you greatly in preparing yourself for the tax season well in advance. If you are aware of all the rules and regulations, you can save yourself from filing wrong tax returns and avoid paying penalties.
Take the help of QuickBooks accounting software in creating tax reports
A majority of the small and medium businesses across the world are relying on QuickBooks accounting software to manage their finances. The QuickBooks accounting software can help you in keeping and managing your finances in an organized way. If you are a business owner, who do not have much knowledge about accounting then QuickBooks is the right choice to manage your business accounts.
Apart from helping you in performing basic accounting related tasks, the QuickBooks accounting software can also assist your business in creation of invoices, payroll management, inventory management, tracking of financial transactions, tax return filings, generation of financial reports, etc.
If you are taking the assistance of an accountant during the tax season, by using QuickBooks accounting software you would be in a position to quickly provide all the information required by the accountant to complete the task of your tax return.
When the tax time approaches, you being the administrator of the QuickBooks accounting software can add him as a guest user to access the company data files and folders stored on QuickBooks. The accountant can view or extract whatever data or report is required by him during the process of filing tax return for your business.
Need Professional Help?
Hopefully by now you must have got a better understanding of the tips and practices that you should follow well in advance to save yourself from the worries related to tax season. Also, you must have understood how the QuickBooks accounting software can help you or your accountant in filing your business taxes well in advance. If you still have any doubt or queries related to the role of QuickBooks accounting software in preparing yourself for the tax season, you can reach out to our QuickBooks Support Team at accountingerrors.co and Dial 📞. Our QuickBooks experts can even guide and assist you in selecting the right version of QuickBooks accounting software for your small or medium business.