As a business owner, you know just how exhausting the tax season can be. Not only are you responsible for your private, individual tax returns, you must also worry about filing taxes for your business. This is no mean feat. In fact, the National Small Business Association estimates that half of small businesses in the United States spend over 40 hours a year on their taxes.
That is precious time that you could be using to expand your company. Still, there is no way to avoid the annual chore of filing taxes. Fortunately, there are a few pointers that can help make the process run smoothly.
Consider the new tax law
Last year, Congress passed the Tax Cuts and Jobs Act—a massive overhaul of the national tax system. The tax overhaul is bound to have a massive effect on how American businesses pay their taxes—in some good ways, and some bad. The most important thing is that you and your tax attorney are up to date on all of the new tax regulations and how to incorporate them in your business taxes.
Hire outside assistance
Business taxes are usually much more complex than private citizens’ income taxes. In many cases, it is not wise for even the savviest business owner to tackle small-business taxes on their own. The NSBA Small Business Taxation Survey reports that over 80 percent of businesses hire outside assistance. A financial advisor, accountant or tax attorney can be worth their weight in gold for filing accurate, on-time business taxes.
Incorporate new technology
While some people still prefer to fill out their taxes the old-fashioned way, there is a plethora of new technology that can make tax season much easier. You have the option of filing taxes online, which is both faster and more accurate. You can also incorporate tools like Skype to communicate face-to-face with your tax professional or your internal accountants. And there are software solutions that can help break down your expenses and maximize your deductions.