For many small business owners, tax preparation is an inconvenience they’ll gladly avoid if they had the chance. Between satisfying your customers, monitoring your employees, and keeping an eye on your suppliers, we can bet there’s more than enough business activities you’d rather focus on. However, the law is clear enough about the importance of preparing your taxes as and when due and preparing them accurately. If you do not have a solid background in tax laws, it would be best if you considered hiring a competent accounting firm for your tax preparation in Titusville.
What are some tax preparation tips for small businesses?
When filing taxes as a small business owner, the last thing you want to do is fall out of compliance with the myriad tax codes. In the quest to avoid this, many business owners tend to pay more than they should be paying as taxes. They do not take advantage of deductions and other flexibilities that big corporations freely exploit. Below are a few tax preparation tips that can save you time and money, while still ensuring you’re not breaking any laws:
Consider making year-end investments
Everyone feels happy when they can legally save some money on taxes. An excellent means of increasing your deductions during tax preparation in Titusville is by making significant capital improvements as the end of the fiscal year draws nearer. Your investment may be a new property or equipment that qualifies for a deduction, according to Section 179. You should also ensure whatever you’re purchasing will be useful to your company in the long-term.
Check your retirement plan
Another legal way of saving on taxes is investing in a retirement plan for your employees. Small businesses enjoy the bonus of having extra-flexible retirement plan options at their disposal. With the Simplified Employee Pension Plan (SEP), business owners do not have to contribute any funds until the due date. And when the date arrives, they can always file for an extension, even though they would have already enjoyed a deduction on the return. Retirement plans further have the added benefits of helping to attract and retain top talents in your industry.
Check for uncollectable debts or obsolete inventory
Doing business is not without risks. Some customers may refuse to pay their debts, and you may purchase some inventory that won’t sell. Although both situations could be tough on any business owner, you can still enjoy some respite via deductions. As long as you have proper records, you can save some money if you factor uncollectable debts and inventory during tax preparation in Titusville.
Contact the experts for tax preparation in Titusville
As a full-service accounting firm, we specialize in handling all aspects of business accounting and bookkeeping for small and medium-sized businesses. Our company has a track record of providing quality services at the most affordable prices, and we have experienced professionals that are adept at all things business accounting. Need help with tax preparation in Titusville? Get in touch with us today, and we’ll be happy to see how we can help.