NOW Is the Best Time for Business Tax Planning to Save On Taxes
Alleviate anxiety and panic later on in the year and help your business’ bottom line by prepping for tax season early. The best way to save money on your taxes is to get started on them well ahead of time.
Plan Your Approach
Timely tax planning is the secret to success come April 15th. When it comes time to file your taxes, the first thing you need to do is get your records in order. This can be a herculean task if you haven’t organized paperwork since the last time you filed your taxes! The best thing to do is to establish a system that you can adhere to with a modest amount of effort the whole year through. It’s also important to know in advance some of the deductions you’ll be planning on taking.
One of the most illuminating examples is that of business-related expenses for your vehicle. If your personal vehicle doubles as your work vehicle, you can deduct business-related travel expenses. There are two ways you can file for this deduction.
Each year, the IRS puts out standard mileage rates—what it considers to be the cost of operating an automobile for business. In 2018, that rate is 54.5 cents for every mile of business travel driven. However, you have the option of calculating the actual cost of using your vehicle. Keeping careful track year-round will allow you to choose the method that results in the larger write-off.
Keep Careful Records
Income, expenses, receipts—it all has to be kept and sorted appropriately. This is the information you’ll need to reference when you file for deductions on your tax return. Without having everything in order, you’ll end up missing out on valuable savings on your tax return. It’s important to maximize your deductions no matter what, but in the early days of a small business, this methodical approach to small business accounting can be the difference between keeping the lights on and closing up shop. The travel example above is only one of many ways that a little record keeping can result in real savings for your business.
Get Timely Advice
Tax law is constantly changing. It’s a job in and of itself just to keep up. As a small business owner, there are already a lot of hats you’ve got to wear. Most small business owners don’t have the time to add another. For this reason, businesses often fail to avail themselves of beneficial tax provisions. And we’re not talking about little-known loopholes. There are tax provisions designed for the express purpose of aiding the growth and prosperity of small businesses. Learning about these after it’s too late to take advantage of them can certainly sting.
Seeking outside aid for business tax preparation may seem like an unnecessary expense, but if you do your research and enlist the aid of a company you can trust, it’s one of the best investments you can make. Here in Richmond, VA, Steiner Business Solutions is ready to help you get started now on planning your taxes. Give us a call today at 804.525.4259 and reap the rewards come tax time.