The New Year represents a fresh start at life and an opportunity to strive toward higher goals to many people. While small business owners in Texas may think that the beginning of another year has little bearing on their companies, the start of the New Year offers an excellent opportunity for such individuals to reconsider their tax filing practices to ensure they handle their taxes with as little issues as possible and avoid harmful penalties and interest from the Internal Revenue Service.
Running a company is hectic work, especially if one does not have the luxury of delegating tasks to a large staff. However, most successful small business owners in Texas achieve profitably in part by avoiding disorganization. Likewise, staying organized is crucial for those hoping to file their taxes without mistakes. Failing to do so can make it much harder to file and puts a business at risk for an audit.
If an audit does occur, an organized business can easily and quickly provide the IRS with the necessary documents and prevent the case from stretching on unnecessarily. As such, small business owners should start organizing their expense receipts, bank statements, pay stubs and invoices and continue this practice throughout the year to make tax season dramatically less chaotic. Owners should check this paperwork each month to ensure all their figures match up. This can seem tedious and laborious to some business owners, but it will save them time and stress later.
Small businesses with their own accountants have the advantage of handling their own taxes, but many such companies do not have the personnel or resources to hire a dedicated bookkeeper. Many experts recommend that small businesses with more than a few employees outsource their taxes to a professional. While this service will cost money, it will allow owners the time and peace of mind needed to focus on more important aspects of their businesses.
Source: Business Insider, “5 Essential Year-End Tax Tips For Small Business Owners,” Melissa Stanger, Dec. 28, 2012