Preparing for tax season can be overwhelming, even if you are working with an experienced accounting services company like MKS&H. However, putting time and effort into planning and preparing for the filing process can rapidly streamline things and make sure that you are getting all of the deductions that you deserve. Here are some of our best tax tips for small businesses like yours.
4 Tax Season Tips for Small Businesses
- Stay Organized Throughout the Year: When you are already organized, tax season is a breeze, since you just need to go through the papers you have set aside and forward them to your accountant. Unfortunately, if you don’t take time to stay organized during the year, it can make preparing things during tax season more stressful. If you don’t already have a system set up for documenting things like receipts, now is the time to establish one for the 2023 tax year.
- Report Accurately: When you report income and expenses to the IRS, you need to take the process seriously and do your best to report with 100% accuracy. Treat the accounts for your small business as if you are an employee working for a company, and go above and beyond to make sure that you are operating with integrity.
- Follow Filing Requirements: One of the most frequently forgotten parts of tax season is following all of the specific filing requirements for your state and local municipalities. Every state and local area is different, and your accountant can help make sure you are filing all paperwork that must be filed to stay in good standing.
- Keep Business and Personal Expenses Separate: During tax season for many small businesses, some people have trouble sorting through their accounts due to the mixture of business expenses and personal expenses. This can lead to major problems if you are audited by the IRS. When you are operating your business, ensure that your personal and company accounts are completely separate. This also makes things much easier for your bookkeeping tasks and your accountant who is preparing your taxes!
Master the Tax Filing Process with Help from MKS&H
MKS&H provides tax and accounting services to businesses of every size and in every industry. We can work with you to make taxes easily and avoid the most common mistakes. Contact us today for a consultation.
About MKS&H: McLean, Koehler, Sparks & Hammond (MKS&H) is a professional service firm with offices in Hunt Valley and Frederick. MKS&H helps owners and organizational leaders become more successful by putting complex financial data into truly meaningful context. But deeper than dollars and data, our focus is on developing an understanding of you, your culture and your business goals. This approach enables our clients to achieve their greatest potential.