If you own a company, taxes aren’t something you think about only in April. It’s a year-round consideration and doing the following will help keep you from scrambling when it’s time to file.
Don’t Mix Business and Pleasure
You should have a credit card and savings account for your business. Don’t pay for anything business-related using personal accounts or vice versa. Even if you keep an accurate account of business expenses, if the IRS notices personal ones mixed in with them, you’re liable to be in hot water.
Do Leave a Paper Trail
If you plan on using certain purchases and subscriptions as a tax write-off, you must be able to back up everything you claim with paperwork. This means using your business credit or savings account to buy it, as well as saving the receipts.
Don’t Cut Corners
Be sure to make note of all payments received, no matter how small. Even if you don’t make a note of it for taxes, the payee probably will, and when tax time rolls around you’re still going to be on the line for it.
Do Invest In a Good Accountant
By looking into Houston TX reliable accounting you will be able to make the best financial decisions possible for your company and its future. Your accountant should act as an advisor, analyzing your gains and losses and giving advice on how to balance them. They might notice trends you don’t see and figure out where money is hemorrhaging.
Don’t Ignore Payroll
You may have someone in-house to take care of payroll or you might subscribe to an outside service. Either way, just because it’s someone else’s job, it doesn’t mean you shouldn’t check the work. If there’s a mistake your payroll guy won’t pay for it, you will.
It’s better to have a boring tax season rather than one filled with heart-stopping revelations. By keeping track of things throughout the year, filing goes smoothly and you will have fewer nasty surprises.