Do you want your yearly tax filing to be less overwhelming? As a small business owner, you can prepare for tax season every year in numerous ways. Here are several ideas and tax filing strategies that every small business should consider.
Hire the Right CPA or Accountant
The right certified public accountant (CPA) will work with you throughout the year to keep track of income and spending, prepare financial statements, and help you file taxes so you don’t have a cash flow issue. In addition, a qualified accountant will help you monitor your gross and net profits. Working with an accountant from the first day you own your business versus tax season is ideal.
Income & Expenses
One of the tax filing strategies includes claiming all income you report to the IRS. The IRS obtains a copy of 1099 forms, matching your reported income against what they know you have received. Also, it’s helpful to invest in user-friendly and inexpensive accounting software to assist you in keeping track of your income and expenses. This will help ensure an accurate tax record. Otherwise, you could end up leaving deductions or receive a tax audit.
Moreover, the IRS will view your personal accounts if you blend personal and business expenses. Even if you report business expenditures correctly, having a separate bank account for your small business is always ideal. Also, use business accounts for business expenses.
Classify Your Business Correctly
Determine if you want to classify your company as a C or S corporation, Sole Proprietor, or LLC. These classifications will have various effects on your taxes. As a result, you might end up overpaying taxes if you don’t classify your business correctly. No worries, an accountant or attorney can help you determine which is best.
Malden Solutions Can Manage Your Payroll
When you hire Malden Solutions for payroll management services, it makes a substantial difference. We are a reputable team that can assist you in optimizing your payroll process through our small business employee solutions. Plus, we will follow up with your small business and ensure that your tax filing strategies comply with the appropriate state agencies.
Find the Right Health Insurance Solutions for Your Needs
Malden Solutions has a wealth of expertise in providing employer insurance solutions, HR solutions, and individual insurance solutions to businesses both big and small. Our team of seasoned professionals can help you navigate the rapidly-changing world of insurance with ease. We partner with businesses and individuals throughout the country to provide our dedicated services for employee benefits but also work within our surrounding communities in Maryland, Northern Virginia, and Washington, D.C. Contact us today to learn more about how we can provide effective, dynamic solutions for your business. Stay connected with us on Twitter, Facebook, and Linkedin.