Taxes can be one of the most stressful and intimidating aspects of running a small business. Regulations change each year and the concern of accuracy in case of an audit is always present. Let’s talk about how small businesses can be prepared to tackle their taxes the “EZ” way. 

Understanding Small Business Taxes

Taxes for small businesses go beyond the basic income tax. You may also need to contend with payroll taxes, self-employment taxes, sales taxes, and possibly property taxes. Each tax has its own set of rules and deadlines, which can vary depending on the legal structure of your business, the state you operate in, and several other factors.
If you don’t know the specific tax requirements for your business, consider hiring an EZ Expert to review your financials or to help you prepare your taxes.

Organizing Your Documents

It’s crucial you have access to the relevant documents when you need them. Keep detailed records of all income, expenses and potential deductions. This includes receipts, invoices, payroll records, bank statements and any other financial documents.
Bonus tip: Store your most important documents for free in the preconfigured folders in the EZ Bizzy all-in-one small business app, so you never have to go searching through your cluttered paperwork or a messy desktop!

Maximizing Deductions

How familiar are you with tax deductions? Small business deductions can include home office expenses, supplies necessary for your job and vehicles used for business purposes.
In order to be deductible, expenses need to be relevant and necessary for your job function. If you need help considering which expenses can be deductions, consult an expert accountant or tax professional.

Choosing the Right Filing Status

The type of structure for your business will determine which filings will be necessary for you; examples include sole proprietorship, partnership, limited liability company (LLC), corporation, or S corporation. Each organization has different tax requirements, so it's essential to understand which tax forms correspond to your business type.

Getting Taxes Done Right

Many small business owners are required to pay estimated taxes quarterly. This system involves estimating your income and corresponding taxes for the year and paying a portion of that estimate each quarter. Failing to pay enough in estimated taxes can result in penalties, so it's important to calculate these payments accurately.

While tax software can simplify the process for many small businesses, don't underestimate the value of a good accountant. Tax professionals stay up to date on the latest tax laws and can provide specific advice to your business. Experts can also help you plan for the future, potentially saving you money in the long run!

Doing taxes for your small business can be complex, but it doesn't need to be daunting. Stay organized, research your unique circumstances and when in doubt, seek professional help so you can file your taxes worry free.

With these tips, you're well on your way to a simplified tax season. Check out EZ Bizzy's suite of tools to help you stay organized and get paid on time, and while you’re at it take a look at the EZ Expert Marketplace to compare tax review and preparation services.