4 Steps to Simplify Your SMB’s Taxes in Austin
When managing an SMB in Austin, it is important to consider financials, and specifically, taxes. Tax is a crucial part of your financial planning and once a year you will need to turn your attention to your tax return and ensure that it is filled into the best of your ability and sent off in time.
Managing your tax as a small or medium business owner can be tricky, and the complexities behind managing a business come to the forefront of your mind when filling out the information. The most important thing you can do is get ready and prepare yourself for filing a successful return.
Today we want to talk about some of the ways that you can prepare yourself and simplify your taxes as an SMB owner in Austin.
Gather Relevant Documentation
The first step to filling in a successful tax return is to gather all of your essential documentation. You will need things such as your bank statement, payroll files, invoices, credit card statements, and records of business expenses. There are many small expenses that can be added to your tax return to maximize your savings such as stationery or office amenities, and you should keep all receipts for these items ready to tot up at the end of the year.
Hire A Certified Public Accountant
If you are hopeless with taxes and you are scared of making a mistake, consider hiring a CPA in Austin to help you fill out your tax return and maximize any savings. A CPA is a registered financial professional and they will be able to offer guidance and advice on how to save money on your taxes and also how to budget better for your small business. This will take the burden off you and will avoid you making any silly mistakes that could cost you dearly later on.
Use Deductions Wisely
One of the things you will want to ensure before you file your tax return is that you use your budget wisely to take advantage of any deductions. When you fill out a tax return, you need to state your income and then separately state your deductions. Deductions are anything from coffee to cleaning supplies to company trips, and now is the perfect time to take advantage of these. By having an office party or a lunch and adding it to your deductions, you stand to save money on your tax return when it comes around and you have the added bonus of having some fun along the way.
Choose A Payment Plan That Works for You
When paying taxes you have a few options. You can either pay a lump sum right away, or you can pay in installments throughout the year. Make sure that you choose a payment plan to suit you as an SMB because this will impact your financials throughout the entirety of the next year. Consider your monthly budget and decide whether this will work best for you or whether paying all at once will work better.
Use these tips to prepare for your tax return as a business owner and maximize your savings this year.