Small business owners can feel added frustration and worry going into every new year. Once the busy holiday season is over, it’s time for business owners (and everyone else) to begin to think about the upcoming tax season. We can help solve your problems as a small business owner and trying to navigate the tax rules and regulations that come along with owning a small business. Here are four tips to help you through the 2016 tax season:
Explore All Possible Deductions
There are many common deductions that can be overlooked. Some of the most overlooked deductions for small businesses are company-related mileage on vehicles, asset deductions, charitable giving, specialty deductions, bad debt, and loan interest. All of these deductions can be found in the 1065 Form.
Avoid Getting Caught Up in Personal Expenses
One of the major concerns of the IRS is that small businesses are writing off personal expenses as business expenses. Keeping these expenses separate will be key in avoiding stress when it is time to sort them during tax season.
Continually Track your Assets
If you keep a record of expenses throughout the year and an organized record of assets and liabilities, you will greatly reduce your stresses come tax season and have a better grip on your finances all year.
Ask for Advice
Especially for a new small business, completing taxes can be a daunting task. Don’t be afraid to ask for advice from professionals or other small business owners. You might not realize which expenses qualify for a deduction. If taxes are not your forte, a good accountant will be the best investment you can make for your business.
Properly tracking finances can make or break a small business. Schlenner Wenner & Co. helps small businesses understand and take control of their taxes and finances (we can help with payroll, too). If you have any questions or concerns about the upcoming tax season, visit our website at swcocpas.com.