If you operate a small business or the finances of a larger organization, you may find tax season very frustrating. Each document can reveal missed financial opportunities or unnecessary costs that could make a crucial difference in these difficult economic times. Don’t get stuck in the same spot next year, consult Liu & Associates’ list below for some helpful tax planning tips to mitigate higher taxes for businesses.
EMBRACE TECHNOLOGY
Avoiding tax accounting software and computers is unnecessarily costs you or your business capital that would be better spent elsewhere. From labour costs to fees for late or inaccurate returns, there are incredible savings to be gained by employing affordable, professional computer programs. Not only is most software endorsed by financial experts, it can also catch trends and opportunities that human error might overlook.
USE A FAIL SAFE
Don’t leave your business’ tax return to the last minute or even in the hands of just one individual. Spreading out financial preparation over the year and having another set of eyes can help catch mistakes and potential areas of improvement. Your business may suffer if you fail to prepare for the worst– if you do, you can expect the best!
HIT THE BOOKS
You and your employees should be well acquainted with eligible tax savings and deductions. Being aware of these options early on can help avoid higher taxes than you need to pay. Don’t overlook the value of minor costs added up over time– travel, gas, accommodation, meals, entertainment and even office supplies can often be deducted by businesses and their employees.
FILING SYSTEMS ARE YOUR FRIEND
We’ve all seen the caricature of a small to medium business owner with an overstuffed shoe box of bills, receipts and invoices (not to mention the exasperated accountant)! There is a reason society makes of this situation– anyone with interest in furthering their business should be well on top of its finances. If you are naturally disorganized or easily overwhelmed, there is no better money spent than that which builds an error-free, easy-to-use filing system.
KEEP IT PROFESSIONAL
Never mix your business and personal accounts! This can create a quagmire of documents for you, your bookkeeper or your financial advisor. Clear business records will ensure you are taking advantage of every opportunity.
This list only covers a portion of the financial responsibilities of a business, but if you have any questions: Liu & Associates can help! Our staff is standing by to offer consultation and guidance to keep your business in the black all year round.