1. Deductions – Make the Most of Them

While reviewing your expenditures, remember that ‘ordinary and necessary’ business expenses aren’t just equipment and rent. Business losses can be deducted from the business owner’s personal income taxes. In addition, if you are on a business and pleasure trip, the transportation costs are deductible if you spend more than 50% of your time doing business. Check with your accountant to find out if you are making the most of your deductions.

2. Check out Tax Credits

There are a variety of valuable tax credits available that can reduce your tax liability. These tax credits include Employer Social Security Credit, Disabled Access Credit, Work Opportunity Credit, Research Credit, Investment Credit, and more. Ask your accountant what credits are available for your business.

3. Quarterly Estimated Tax

If your business has a tax bill of more than $500, you should be paying quarterly estimated taxes or you may be hit with IRS penalties which can severely impact your business’s cash flow.

4. Don’t Forget to Give

Charitable contributions can be claimed as deductions!

5. Meet Your Deadlines

Annual returns are due on April 15 for unincorporated companies and S corporations.
C corporations must file within 2 ½ months from the end of their fiscal year.
Estimated Taxes are due 4 times a year: Jan. 15th, April 15th, June 15th & Sept. 15th.
Sales Tax is due quarterly or monthly, depending on what state your business is located in.
Employee taxes are due either weekly, monthly or quarterly, depending on the size of your payroll.

6. Update Your Accounting

Spend time each year reviewing your accounting practices to ensure that your books are up-to-date and accurate. Speak with your accountant about your procedures and ask if your current computer accounting system is the right system for your business.

7. Always Keep Your Tax Documentation for Seven Years

Although no one is looking for an audit, it is better to have your documentation ready if it happens.

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