Top Business Tax Tips
Taxes can be complicated – even for non-business owners – but keeping your tax records in order is easier than you might think. Discover our top tips for staying calm and in control when tax season comes around.
- Document all incoming funds. Your business receives money from many sources for many reasons. Separating business receipts from non-business receipts and taxable from nontaxable income will help you identify where money is coming from.
- Track expenses. Before tax season even starts, ask your accountant which types of expenses could be deducted from your business’ taxable income. Planning for this ahead of time could end up saving you money in the long-run.
- Save supporting documents. Keep a file of all papers that support income claims, expenses and deductions – think sales slips, purchase records, expense reports, travel records, paid bills and invoices, deposit slips and canceled checks.
- Know what you’ve paid. It’s a good idea to save all documents required to verify state and federal payroll taxes withheld from employees, as well as any taxes collected on sales – they’ll come in handy this tax season.
Not sure which records to keep and which ones you can discard? The Internal Revenue Service is a good place to find answers for other tax questions you have for your small business.