Preparing for Taxes, Year Round

Every year in April, small business owners scramble to pay all the taxes that their business owes. This can sometimes be a stressful process: you’re scrambling in search of documents, digging through drawers in search of receipts, hiring accounting firms and much more to make sure you get every deduction owed to you.

What if you didn’t have to deal with that stress? Well, you don’t have to, if you work to prepare your business for tax season. Here’s a few tips that’ll help you get into the habit.

Keep all documents and receipts on site – and digitize, when possible
At the end of the tax year, you’re going to miss out on some potential deductions – unless you have all the receipts related to expenses incurred on behalf of your business on-site and ready to go. So keep a well-organized drawer that includes not just all of your financial statements, but all of your receipts collected over the course of a given year. That way, you can ensure they’ll be on hand when it comes to be tax time.

Provide employee benefits
Looking for new ways to earn deductions? Investigate which fringe benefits offered to your employees can lead to significant tax savings for your company via IRS documents, and you’ll be sure to find some deductions you can take advantage of.

Always perform projections
Don’t just look at your financial statements at the end of the tax year – keep an eye on them through the whole calendar. If you see an increase in sales, for instance, then you’re going to need to adjust the amount you have put away for tax payments, too. At the very least, take a look at your financial projections once every financial quarter – and you’ll be well prepared for when tax season shows up.