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If you haven’t gotten started yet, now is the time to start on your small business tax prep for tax season.
As a small business owner, you have a lot on your plate throughout the year, and the new year is no different. However, this is a valuable time that you use to get ready for another upcoming busy part of the year – tax season. What are some of the ways that you can get started on your small business tax prep now?
Get Your Records Together
Before you can have your taxes completed by a professional, you need to gather a variety of records so that all of the information submitted is accurate. These records should include things like last year’s federal and state tax returns, current financial statements, income records, any estimated tax payments that you made over the course of 2022, and your itemized business expenses. As part of your small business tax prep, you will need to take extra care to meticulously track business expenses and things like the square footage of your home office if you plan on taking advantage of the home office deduction.
Understand Your Filing Deadline
The time that your taxes are due will depend on what type of business you have. As part of your small business tax prep, you should make sure that you understand exactly when your tax returns are due. If you are a single-member LLC or a sole proprietorship, you are considered a corporation. This means that, provided that your tax year ends on December 31, you will need to have your tax return filed by April 15. There are exceptions for other types of businesses, and you can always file for an extension, so make sure that you speak with your accountant.
Determine Your Payment Options
Unfortunately, during your small business tax prep, you might realize that you do not have adequate cash on hand to cover your tax liability. While proper tax planning can make sure that this is avoided, we realize that accidents happen. There are a few different ways that you can pay the IRS. You can receive a temporary delay in some cases, or you can complete an IRS installment agreement or monthly payment plan to cover your tax debt.
Make Following Tax Requirements Easy with The Harding Group
Unlike other accounting firms, The Harding Group will never charge you for consultations and strive for open communication with our clients. We serve clients in Annapolis, Anne Arundel County, Baltimore, Severna Park, and Columbia. If you are ready to take the stress out of tax time as a small business owner, contact us online or give us a call at (410) 573-9991 for a free consultation. Follow us on Facebook, Twitter, YouTube, and LinkedIn for more tax tips.