Get your finances in order with these small business tax tips.
Tax season is fast approaching, and it’s important that you start to prepare your business for the big day. It’s a big job to get all your business taxes in order. Ensure that you’re ready to file your taxes with these small business tax tips. Here’s what you need to know.
Stick to an Accounting Method.
When looking through your business finances, it’s important that you stick to one accounting method. As a new business, you have plenty of options when it comes to organizing your finances. Once you choose your preferred method, you must stick with it. Choose either the cash method or the accrual method. Under the cash method, you deduct expenses at the end of the year and then pay them. Under the accrual method, you deduct expenses in the year that you accrue them.
Classify Your Workers Properly.
When submitting your taxes, it’s important that you list your employees properly. Ensure that your employees are employees and that your independent contractors are independent contractors. Classifying your employees appropriately is the best way to file your taxes to avoid any issues down the line.
Keep a Thorough Record.
As a small business owner, it’s easy for your personal and business expenses to overlap. After all, what’s a charge here and there. However, when it comes to assembling your taxes, it’s important that you establish a clear line between your business expenses and your personal expenses. Mixing the two can get you into serious trouble. Ensure that you have a thorough record of your expenses so that filing is as easy as can be.
When it comes to your business taxes, use these small business tax tips to make the process easier. Help to make your business safer with the right business insurance in Astoria. Contact the professionals at 01 Insurance to find the best personal and commercial insurance in New York.