Tax Planning for Small Business Owners

Tax Planning for Small Business Owners

Nobody can force you to plan about taxes before the time comes for you to pay them. However, the cost of not planning ahead might even cost money in the long run and might even land you in prison for tax evasion. For small business owners, an accounting system that places taxation as a major concern can prevent them not just from paying the right amount of taxes but may even reduce them into a smaller amount.

Don’t wait for the accountant

Some business owners just contact their accountants once they realize paying for taxes at the eleventh hour. What they didn’t realize is that taxes must be considered for every transaction involving cash most of the time. That means a business owner must always check and record sales and expenses. He must also refer to an expert on tax planning while doing so. A CPA firm like MKS&H is needed for situations like this because it has been excelling at not just tax preparation and filing but even IRS representation.

Know all the possible deductions

A business owner may have engaged in something that is tax deductible but doesn’t know it. For example, a dinner you have organized and paid for can be considered a business expense and will help you reduce taxes eventually. That’s just one of them. When you hire MKS&H, we will check on your money history and can easily identify payments and purchases that can be considered for deductions. We know the after-tax impact of every transaction.

Learn to organize

The deduction we learned earlier sounds good but do you have proof that the dinner ever happened, such as a receipt? People can lose money to taxes because they have not developed the habit of storing important documents or filing them in an accessible way. You can’t entirely blame them. Over time, papers accumulate and it feels like looking for the right one during an important time like tax filing can seem like forever. MKS&H helps eliminate the stress you may encounter during tax preparation. With MKS&H, you will be working with tax professionals, who will help you understand what we are doing every step of the way until you sign the tax papers for submission. We assist with accounts receivable, billing and collection. With our help, you won’t feel like you’re a stranger in your own office anymore.

Hire the right outside help

If you don’t have a regular accountant or bookkeeper in your business, then you must outsource one. The market is flooded with them. Each one can promise you stellar work for lesser pay. Remember, however, that an accountant has to match the business. Thus, there are accountants for big companies and accountants for small businesses and niche ventures. Simply put, they’re like doctors. They specialize in something in particular. MKS&H, for instance, provides accounting services (including tax preparation) for small to medium-sized business-like construction, manufacturing and funeral homes.

If paying taxes is inevitable, so is tax preparation. That should be a mantra for every small business owner to avoid costly mistakes and to possibly pay less tax money. There’s work involved in doing so. But, you can always get the right help like MKS&H to make tax preparation easier for you and your business.

About Author

Related posts

Paying Taxes Overseas as a U.S. Citizen

If you are a United States citizen who is working abroad, you might be confused about how you will be taxed. In this instance, the rules for filing taxes and paying estimated taxes are the same regardless of whether you are abroad or in the United States. Regardless of...

Read More