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How to handle your Business Taxes

The IRS provides information on their website for small and growing businesses and how to pay your business taxes. The IRS also has some valuable tips on getting small businesses off the ground with checklist for your business tax account. Tax deductions can be tricky and if done properly they will keep more money in your business tax account to pay quarterly taxes for the next year. The last thing you want is to misuse your business tax account and have problems with the IRS. Take time to find the best business team you can by hiring a good bookkeeper or accountant and making a thorough decision about paying your business taxes.

A business tax account is a popular method used by companies to pay their quarterly and yearly taxes. Keeping proper records of all your finances are essential to creating a good business tax account. Getting with your accountant and your bank will help you make a proper decision when it comes to setting up your business tax account. Before you set up a business tax account, you need to have a few things in place:

  • Update Your Accounting. At the end of the year, you must know your companies financial situation. Spend time with your accountant to be sure all the books are up to date and accurate.
  • Defer Income. If you can, hold off on receiving money till the first week of January as opposed to December. If you receive the money in January versus in December, you will not have to pay taxes on that money until April of the next year.
  • Increase Expenses. This sounds silly, but increasing the amount you purchase will help to maximize deductions for the tax year. Office Supplies, Equipment, Travel and paying your bills early all add up for deductions.
  • Inventory. Always check your inventory for damaged goods or obsolete products. Added deductions come from the drop in market value of your inventory.
  • Retirement Plan. Making payments to your retirement plan will help reduce your income for the year. Discuss the best strategy with your accountant or financial planner.

Keep your personal and business tax information separate from each other. If you don't do this, you can be looking at a headache when taxes are due.

Before you can start with your business taxes, you must know your employer ID number and the type of corporation you are in. Some businesses are called an "S-corporation" and they require different taxes than a self-employed individual. Be sure to research all this information before you start printing out random forms. The website is a great tool for a business leader who is looking to take care of the business taxes in house.

With business taxes comes business deductions. Many people are surprised to learn all the things a business can deduct from taxes. Keeping proper records of anything that pertains to your business will help your taxes. If you are tracking your own records, try using a financial program that will help. Many companies use QuickBooks to track their expenses. QuickBooks also provides information you will need for filing your tax returns. If you choose to do the business taxes yourself, you should purchase TurboTax or another tax program that will guide you through every aspect of your business. It also allows you to have an accountant check over your taxes when you have completed them to make sure everything checks out alright and you won't be at risk for being audited.

Of course the best thing you can do for your business is hire a good accountant and run your business taxes by a professional tax company.

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