Most business owners would agree that getting their taxes in order is a great challenge. With all the other important aspects of your business that you need to look into, it's easy to make slip-ups and commit tax mistakes. Here are some of the most common mistakes that business owners commit when it comes to their taxes, as well as the simple and practical ways to avoid them.
1. Combining business and personal expenses.
When you're pressed for time, slumping personal and business finances together seem convenient. But in the long run, you will realize that this is not the case. Combining business and personal expenses takes more time from you to identify which are business and personal not to mention missing business expense. It also complicates the preparation of your financial records for tax reporting, it also sends a red flag to the IRS.
To avoid getting in trouble with the IRS, take the time to separate your business and personal expenses. To start with, use a separate bank account and credit card for business and personal expenses. Finally, make sure you have accurate financial records.
2. Choosing the wrong business structure.
The type of business structure that your business belongs to makes a difference on your tax bill. To keep away from these problems, it is wise to choose the most appropriate business structure for your business. Being in-the-know about business structures can help you make informed decisions on this matter.
3. Missing the deadline.
Since planning and mapping out how to file and pay for your taxes take a lot of time, some business owners opt to do it at the last minute. When this happens, they either make data entry mistakes because of time constraints or worse, they miss the deadline. Either of these two brings an utmost inconvenience to business owners, so the best thing to do is to file before the deadline set by the IRS.
Yes, planning your taxes and settling them on time involves going into a lot of nitty-gritty details. Can you really get them done on your own? Probably not. To make sure that everything is right on track, it is best to seek the help of professionals.
We help you plan, forecast and analyze your financial data
so you can get on top of your finances today to grow your
small business big tomorrow.
Should you buy a business vehicle before year end?
5 Ways to Dance Through Digital Disruption
Find the Right Path Forward With KPIs
Ensuring a Peaceful Succession With a Buy-Sell Agreement
Intelligent Insights: A CFO's Strategic Methods for Cost Controls
4 Surefire Ways to Sustain Business Growth
5 Factors that are Bad for your Business Financial Health
Top 8 Financial Tools for Small Business Owners
Top 5 Bookkeeping Systems for Small Business 2017
What Are Your Financial Statements Telling You About Your Business?
Small Business StartUp New Research Credit Claims, Explained
Financial Tools: Useful List for Growing Businesses
Capital Budgeting Techniques Maximizing Future Profits
Key Profit Drivers You Should Not Ignore
Small Business Tech Trends: Power of Cloud and Mobile Bookkeeping
Growth Game Plan: 30+ Ways to Improve Profitability
Medical Practice Growth Strategies: Improving Profit Margin for Doctor's Clinic
Is Your Business Growing? Profit and Loss Explained for Small Businesses
How Profitable are your Customers?
Dont Let Founders Syndrome Impede Your Succession Plan
Bridging the divide with a mezzanine loan
Critical connection: How costs impact pricing
4 Ways To Get (and Keep) Your Business Data in Order
Valuation often affects succession plans in hard-to-see ways
How to Maximize Deductions for Business Real Estate
Fortifying Your Business With Enterprise Risk Management
4 Tips on Making your Marketing Emails a Blast
Fun fact: Phone service was taxed early and has been taxed often ever since.
Could an FSA Offer the Benefits Flexibility You Need?
Get Smart: How AI Can Help Your Business
7 Steps to Choosing a Successor for your Family Business
Year-End Bookkeeping Reminders You Dont Want to Miss for your Non-Profit Organization
Can't Keep Up with the Deadlines? 6 Tips for Attorneys to Achieve a Stress-Free Year-End Tax Preparation
6 Key Points that Construction Companies Must Have to Prepare for the Year-End Financial Closing and Tax Filing
Find Time for Strategic Planning
Making the Right Choice About Your Office Space
8 Things You Should Consider for Compliance When You Hire Independent Contractors
4 Ways to Encourage Innovation in Customer Service
Light A Beacon to Your Business with A Mission Statement
Turning Employee Ideas Into Profitable Results
Use Bench Marking to Swim With the Big Fish
5 Questions to Ask Yourself About Social Media
3 Ways to Supercharge Your Supervisors
Blockchain May Soon Drive Business Worldwide
Taking It to The Streets: 7 Marketing Strategies to Consider
Say, Just How Competitive Is Your Business Anyway?
Ask the Right Questions About Your IT Strategy
Bookings Vs. Shippings: A Sales Flash Report Primer
Could a long-term deal ease your succession planning woes?
Fun fact: Sit back and enjoy your frequent flyer miles