Small Business Owners – Dance Your Way to Tax Benefits

  1. tax tips for small businessJazz up your financial dance floor by steering clear of the dull groove of inaccurate record keeping! Picture this: a well-choreographed routine of meticulous bookkeeping, where every dollar waltzes in and out, setting the stage for a financially focused business extravaganza. Keep those records in tip-top shape, and watch the tax trouble tango away!
  • Your time is valuable – Consider a bookkeeper to free up more of your time to work on your moves… I mean business.
  • If you’re a DIYer, consider apps that track your expenses and categorize them for you for tax preparation.
  1. Unearth the buried treasure of missed deductions and credits! Think of tax breaks as your business’s secret weapons, ready to slash costs and pump up that bottom line. A dollar saved isn’t just a dollar earned – it’s a dollar transformed into a superhero cape for your company’s financial success.
  • Get tax advice not just tax preparation. Meet with your CPA in the Spring or Summer for tax planning.
  • For DIYer, subscribe to some tax blogs that focus on small business and current tax law changes to get tips.
  1. Don’t let your taxes tap their feet impatiently in the corner – hit the deadlines with precision! Late or incorrect filings are like stepping on the toes of financial success. Plan ahead, partner up with a tax pro, and avoid the penalties and interest, turning your tax dance into a seamless performance.
  • Do tax planning with your CPA ahead of time, not the week before you file. Write out a clear tax strategy plan.
  1. Don’t let estimated taxes throw you into a tax-time tango of confusion! For the self-employed and small business owners, estimating quarterly taxes is like a complex choreography. Set calendar reminders to hit those quarterly beats. A good tax professional can help you avoid stumbling into penalties and interest by setting reminders.
  2. Keep your business and personal expenses in separate dance studios – mixing them is a recipe for financial chaos! Picture this: a graceful waltz between separate accounts and credit cards, ensuring a harmonious performance that keeps confusion and legal trouble at bay.

Mixing personal and business accounts is like a wardrobe malfunction on stage.

  1. Don’t let the sales tax boogie pass you by – collect it, send it, and avoid a costly misstep! For businesses selling products or services, failing to collect and pay sales tax is like missing a crucial step in the financial cha-cha. Dance smart by consulting with a lawyer to ensure you’re on the right tax track.
  2. Avoid the misclassification mambo – don’t let employment taxes trip up your business! Classifying workers as independent contractors can be a risky twirl. Ensure you’re in tune with the tax rhythm by setting up employees correctly from the start to dodge potential legal trouble and a tax headache.

For those businesses in California, it’s even more important to classify your employees correctly. A misstep here can ruin sideline your entire show!

  1. Don’t be a lone wolf in the financial waltz – bring in the professionals to join your business team! Taxes are a team sport, and going solo is like trying to perform a complex routine without a partner. Enlist the expertise of a tax professional to keep your business dance floor free of audit anxiety.

If you remember one thing from these 8 tax tips, get a written financial plan that shows you all the strategies to use and encompasses all your assets in a single document.

Small business owners are the lifeblood of the US economy. You’re the star of the show!



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