Own a Small Business? Tax Filing Tips

A small business tax filing is expected of every business owner, and very few businesses are exempt from filing a tax return. Whether you make a profit or need to report loses, the process is intimidating if you don't have access to the right people or tools to help you. Avoid pain and hassles with these tax filing tips:

Hire a Bookkeeper

Handling the books is a difficult task for many small business owners who are intimidated by accounting or don't like to delve into the financial details of running a small business. When the task of bookkeeping is left undone, more mistakes are made, which affects small business tax filings. Avoid the hassle of faulty records by hiring a bookkeeper early on. You can find and hire a good bookkeeper for only a few hours a month, for $20 to $40 per hour. They can keep your records and send some forms to the IRS on your behalf, such as Form 1099-MISC, which you must file if you pay more than $600 to independent contractors. If you're reading this at tax filing time, it's not too late to hire one. They can go through all of your statements, bills and information to bring you up to date, and set your books in order.

Keep Tax Records Organized

Small business tax filing and preparation requires miscellaneous pieces of documents. If one gets lost or misplaced, it can cause unnecessary delays in the entire filing process. Decide on a tax filing system for tax forms and the other documents you'll need to prepare your tax return. Paper filing is another task that small business owners love to hate, but it's critical for tax filing purposes. You don't need an elaborate system that's hard to maintain, but it should be logical and easy to use.

Use a Tax Filing Software

Avoid mistakes or high fees to tax preparers by filing your own taxes using an online software. Your returns remain in the software's company system for several years, so that you can return to it each year and make updates as needed. You'll avoid having to reenter the same information all over again, and you can access and print your returns at any time. The software you choose for your small business tax filing will also do the hard work of assembling all the forms you need. Trying to figure this out yourself is time consuming and confusing. The chance of you making mistakes on the math is also greatly reduced, as proven tax filing software programs are very accurate.


You should also e-file your taxes, in order to make or receive payments faster. The Internal Revenue Service (IRS) accepts and prefers this method for your small business tax filings. You can pay what you owe in taxes using a debit card or electronic funds withdrawal from your bank account. You'll also know the status of your tax returns, whether it was approved or denied within days, when you e-file. Filing by mail takes weeks to find out either way.

Follow these tips to get the best results from your small business tax filing. You won't open yourself to as many audits from the IRS as well.

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