Last Minute Tax Tips for Small Businesses
Tax season is quickly coming to a close for many companies large and small. We’ve built a list of practical, last minute tax tips for small businesses that you can use to save money. With time ticking away before the filing deadline, let’s dive right in. Just remember to consult a tax professional about any major changes to your tax strategy.
Make the Filing Process Easier With Dependable Software
It might be too late to reach out to a Certified Public Accountant or other tax professional. But that doesn’t mean you’re out of options.
Tax software streamlines the filing workflow. While it doesn’t provide the individual attention you can get from a professional, it makes filing easier. Tax software can:
• Guide you through the steps needed to file.
• Highlight errors and missing information you might not notice otherwise.
• Show you opportunities to increase deductions and save more money.
• Help you file online, avoiding the need to mail in your documents.
Certain types of tax software even offer benefits like online help from human tax professionals, refund guarantees, and audit support. These features aren’t universal, but are common among leading platforms.
Interested in finding the best tax software for your needs? Business.org offered an in-depth review of several leading platforms.
You can also find support for filing your personal return as a self-employed business owner through a variety of providers, as Entrepreneur contributor Peter Daisyme pointed out.
Review Your Available Deductions
The IRS tax code is full of potential deductions and credits for businesses. Not all of them will apply to your business, but at least a few of them most likely will.
We compiled a list of four top tax deductions for small businesses that you can quickly review. These deductions are applicable across a wide variety of industries and business types. Something as simple as using a home office or renting your business space can lead to some tax savings.
Don’t Mix Personal and Business Expenses
Following this tax tip for small businesses can save you a lot of time and stress down the road. Nationwide pointed out that combined personal and company expenses in a tax return can lead to the IRS taking a closer look at your finances. Make sure you only claim legitimate business expenses.
Options for Converted Assets
Inc. columnist John Boitnott explained that it’s common for new small business owners to take personal property and start using it for their business. The process for doing so is a little complicated, but it can pay off. You’ll need to:
• Figure out when you started using the personal property as a business asset.
• Determine the depreciated cost, based on how long you used it as a personal asset.
• Calculate the fair market value – what you could have sold it for – at the time it became a business asset.
This might not be worthwhile for basic hand tools or a desk lamp. But if you use a previously purchased computer, camera, or something similarly expensive exclusively for your business, you can realize some savings.
Supporting Your Business Through Tax Season
Even with these tax tips for small businesses, you may find tax payments put a financial strain on your business. QuickBridge is here to help. We offer business tax debt loans that mean avoiding late fees and penalties from the IRS. To learn more, get in touch with us today.
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