Photo via Pexels
Small business owners face many challenges, from figuring out effective marketing strategies to learning the best practices for success. One task that often creates frustration is filing taxes as there are so many rules and regulations that even vary from state to state. Figuring out the tax process can be stressful, but there are some things you can do to make it go smoother, such as using a professional service to take over and handle the details. Summit Tax Solutions offers several services that can help you free up time and get some peace of mind. Here are a few tips on how to make sure tax season is as stress-free as possible, both this year and beyond.
Acquire an EIN.
If you’re new to business, no doubt one of your first questions will be: What is my EIN number? In a nutshell, your Employer Identification Number or EIN is a nine-digit code that acts as an identifier for your business on all legal and financial documents.
As part of the process of forming an LLC (or Limited Liability Company), registering for an EIN allows for many benefits when it comes to filing taxes. Because the IRS uses the EIN for federal and payroll taxes, the process is more streamlined and there are fewer opportunities for mistakes to be made, no matter what kind of tax payment system you have set up. This number can also protect your business by allowing you to open a separate bank account and obtain loans and other financing, as well as preventing identity theft by eliminating the need for you to give out your personal social security number to vendors and financial institutions.
Delegate.
Separating business and personal matters is crucial. Many small business owners have a DIY mentality and want to participate in all aspects of their company. While this is admirable, it can lead to heaps of stress, especially when it comes to money matters. If possible, delegate some of the tasks related to payroll, benefits, and tax returns to a capable member of your team or even outsource it.
The key here is to stay organized and limit the number of people who have access to certain information to prevent mistakes or miscommunication. If the job is too big for you to handle in-house, consider hiring a service that can help you stay organized. Summit Tax Solutions can help with everything from filing business taxes to keeping up with your bookkeeping. This allows you to relax, knowing that your finances are well taken care of.
Stay informed.
Finding help for tax-related tasks is a great way to prevent stress come springtime, but it’s still a good idea to stay informed when it comes to local tax laws and regulations as these can change and leave you owing money at the end of the year. Check up on city and state tax requirements for local businesses to find out if your responsibilities have changed. This might include certain tax forms or licenses. Sometimes, there are also fees involved, so it’s a good idea to have a fund set aside specifically for such instances.
Keep in mind that if you’re a woman, you may qualify for various tax incentives or benefits through special loans, grants, and other opportunities. If you’re living with a disability, there are several resources for you to check out at tax time.
Make sure your records are correct.
It’s important to make sure your records are correct and updated — not just for the business itself, but also for your employees. For instance, if a freelancer or contractor is mislabeled as a full-time employee on a form, you may end up with a major issue come tax time. Make sure your hiring practices are streamlined and, twice a year, go through your records to update and purge to help prevent costly mistakes.
Dealing with taxes as a small business owner can be frustrating, but it doesn’t have to be a stressful task. By staying on top of your responsibilities and utilizing outside help and resources when possible, you can keep spotless records and make the job of filing much easier. Schedule an appointment with Summit Tax Solutions for the expert guidance you could use. Call (435)-214-0123 today.