Now that tax season is officially underway, you will need to begin preparing your documents for your small business in order to file your taxes. Fast and Easy Funds, an independent lending institute, realizes that many companies will hire an accountant or attorney to complete their company’s taxes. However, the suppliers of asset based loans want you to know that you can make the tax process easier by being organized and being careful of tax pitfalls. Here are some of Fast and Easy Funds’ tax tips for small business owners that you should be keeping in mind year round.
– The importance of record keeping. Incomplete records are one of the biggest complications when it comes time for a small business to file their taxes. Using tax filing software year round to keep documents organized will ease the process and help protect your business from costly errors. Another practical application of good record keeping is in the event that you want to expand your business using a cash advance from Fast and Easy. Owners will need to provide financial numbers to potential lenders.
– Tax time. The providers of small business loans strongly recommend taking your tax return to an account for review so that you can help your business plan for the future. You should always have a forward looking approach. You should make sure that any financial errors are addressed, so that they do not remain a problem in the years to come.
– Employees. Make sure that you have all of your employees’ documents in order by the time tax season arrives. You will be required to issue a W-2 form to all of your employees and a 1099 to any employee that can be categorized as a freelancer. The IRS will match the 1099 copies it gets against the income that you have reported, so Fast and Easy recommends keeping good records.