5 02, 2021

How to Prepare Your Business for Tax Season

By |2021-02-03T21:49:58+00:00February 5th, 2021|Finance Tips, Small Business, Tax Deadlines|0 Comments

Tax season can be a stressful time for any business owner. Without assistance or prior  knowledge, it can be difficult to navigate. Additionally, tax regulations change and keeping track of what’s owed, and deadlines, is essential.    Here are tips to prepare for the upcoming season:   Get records in order  Gather all necessary documentation/records in order to ensure you have everything you need and aren’t missing anything important. These can include: prior tax returns, bills, receipts, budgets, expenses, vendor tax forms, and payroll expenses, etc.  Complete your tax returns as soon as possible   You don’t want to be scrambling to find all documentation when the deadline for your tax returns is upon you. Additionally, the earlier you file your taxes the better your understanding of any financial obligations coming.    Seek accounting support   Accountants can ensure taxes are done correctly and on time. Be sure to hire an accountant with experience, great references, and good client reviews.   Accuracy is great preparation  Accurate records helps prepare you for any inquiries. Audits happen and can happen to any business. The more accurate your accounting, the less sstresful a potential audit can be.   Pay attention to the dates  Each year, [...]

1 03, 2020

Tax Season Has Arrived, Are You Ready?

By |2020-02-28T19:33:23+00:00March 1st, 2020|Bookkeeping Basics, Small Business, Tax Deadlines|0 Comments

Filing your taxes doesn’t have to be a stressful affair. Here are a few ways you can keep organized throughout the year before presenting your documents to your tax preparer (plus, they’ll thank you for it). Keep all Your Receipts Take a picture of your receipts with your smartphone or scan them – just make sure that you are saving your receipts! The IRS can audit you up to six years back so it’s important that you save a history of purchases just in case. Chances are, you likely won’t remember why you bought that printer from five years ago, so we recommend you write notes on each receipt explaining the business nature of the purchase. Sort and Categorize Financial Documents You’ll also need to provide other documents like income, records of bank statements, canceled checks and paid bills. Once you have all the documents gathered, divide them into separate categories, such as home-office expenses, utilities, office supplies, and charitable contributions. Having these items organized beforehand will make it much easier for your tax preparer to calculate totals. Find a [...]

11 01, 2020

Important Tax Deadlines 2020

By |2020-01-29T18:07:35+00:00January 11th, 2020|Tax Deadlines|0 Comments

Don’t let a missed deadline be the reason your business loses money this year. Alleviate some tax filing stress and avoid paying penalties with these tax deadlines for 2020. For more a more detailed outlook on tax forms and dates, get in touch with our accounting team at Bakersmith Bookkeeping Group to ensure a smooth tax season!  Jan 15, 2020:  4th Quarter 2019 Estimated Tax Payment Due: Those who are self-employed or have fourth-quarter income that requires you to pay quarterly estimated taxes, make sure to get them postmarked by this date.   Jan 31, 2020:  Form W-2 Filing Deadline: Those who have employees need to fill out two copies of Form W-2 for each employee. One copy must be submitted to the IRS and the other sent to the employee by this date.   March 15, 2020:  S Corporation and Partnership Tax Returns Due: File your S corporation tax return (Form 1120-S) or Partnership return (Form 1065) by this date. If you need more time to file your tax return, file for an extension.   April 15, 2020:  Individual Tax Returns Due of Tax Year 2020: Tax returns are due by midnight on April 15, 2020. [...]

12 12, 2019

Ready for Tax Time? Keep your Receipts Organized

By |2020-01-29T18:07:11+00:00December 12th, 2019|Bookkeeping Basics, Small Business, Tax Deadlines|0 Comments

It’s easy to undermine the value of keeping your receipts organized – until your business loses money from your next tax return. Receipts are audit protection; keeping them organized and stored away will serve you when you need proof for tax deductions on business related expenses. Without proper documentation, you could be losing the money you thought you would be getting back as a tax deduction. So before you disregard your receipts, read the following tips for keeping your receipts organized. Keep all receipts. Although technically under IRS Publication 463, you would not need to keep receipts for expenses under $75, for peace of mind holding on to receipts can come in handy if you ever need to provide additional proof to the IRS. Being prepared means you will save time and money. Additionally, small expenses add up. Keeping your receipts can give you transparency on where your money is going. Record business purposes on receipts. Not all purchases or expense are self-explanatory. For example, you may remember why you bought a printer, but a restaurant receipt for a business [...]

1 06, 2019

A Guide to Quarterly Taxes

By |2020-01-29T18:16:25+00:00June 1st, 2019|Bookkeeping Basics, Small Business, Tax Deadlines|0 Comments

Quarterly taxes generally apply to those who are self-employed or earn income as an independent contractor. As a business owner, you are responsible for paying your own taxes because you don’t have an employer withholding taxes for you. To address this, the IRS collects estimated taxes every quarter. By the end of the year, you will either owe money if you are short on taxes or get money back, depending on how well your business does. For those handling their own taxes, here is a brief overview to understand estimated quarterly taxes. How do I determine if I need to pay quarterly taxes? For those freelancing and expecting to owe more than $1000 in taxes (which amounts to approximately $3000 or more in profit), you may need to pay quarterly taxes. What do I need to track? Track your earnings in the form of paystubs or invoices. Tracking expenses can help lower how much you owe to the IRS. Here are a few common expenses that can be grouped as an “ordinary and necessary” expense for your business: mileage, home [...]

1 04, 2019

Income Tax Tips for New Business Owners

By |2020-01-29T18:09:17+00:00April 1st, 2019|Bookkeeping Basics, Small Business, Tax Deadlines|0 Comments

Starting a new business venture brings excitement, but can also be equally overwhelming. Between taking out loans, creating an effective branding strategy, and acquiring new hires, accounting for tax liabilities may be a lower priority on your immediate list of to-dos. Still, it is important to consider the implications of your tax responsibilities in order to stay in line with IRS requirements and stay informed about maximizing deductions and preventing liability issues in the future. The following are a few things small business should know about federal income taxes.  Different legal entities have different impacts on your taxes. Your tax liability can vary greatly depending on the type of legal entity you choose. Whether you have a sole proprietorship, LLC, S corporation or partnership, each business type has different benefits and limitations. Learn more about the different types of business structures in our blog. Depending on your business structure, you may be subject to higher corporate rates, or in the case of small business owners, you may have the advantage of paying taxes at the shareholder level. It is important to look into the types of [...]

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