August 2019 Blog Posts
August 15, 2019
Tax Filing Tips For Small Business Filing The First Time
First year in a new business? That’s great. It’s an exciting time filled with possibilities, heartaches, and endless learning experiences. And while you’re probably expected to be the jack of all trades, filing your taxes isn’t always one of those skills. Depending on the size and type of your businesses, you can end up spending a lot more time and money learning how to do it yourself than just hiring a professional.
But, if you’re determined to file yourself the first time, there a few tips and tricks you should know to make the process easier. While the U.S. tax code contains more than 3.7 million words, there a few tips that all first-year business owners should be aware of.
Small Business Tax Tips
- Keep Track of Automible Expenses - Especially in the beginning, automobile expenses can be a major liability. When you file your returns, you’ll need to report when the vehicle was used, how much it was used, and how many personal/business miles you put on it.
- Pick an Accounting Basis - As a small business owner, you’ll have to make the decision to prepare the tax returns on the cash or accrual basis. Under the cash basis, income is recognized when received and expenses are acknowledged when paid. Under the accrual basis, income is recognized when received and expenses are acknowledged when incurred.
- Review The Tax Return In Full - Like your teacher always told you in school, read all the instructions. You’ll need to know which questions you need to answer and how to answer them.
CPAs Specialize In Filing Business Taxes
At the end of the day, there are four basic questions you have to answer when paying your taxes.
- What types of taxes need to be paid?
- How much do you have to pay?
- When do you need to pay?
- And how will you pay?
While these may seem simple on the surface, things can get complicated in a hurry. Here at BIG, we’ve got CPAs that specialize in filing business taxes.
We can help navigate the choices of proper expensing of items, how to legally minimize your tax obligation, and help you to implement proactive tax reduction strategies as the business grows. We can file all required tax returns, business, personal, employer, sales tax, and CAT.
Paying your small businesses taxes for the first time can seem overwhelming. Let BIG’s expert CPAs lend a hand.
Contact Us Now for More Information