Tax season can be stressful for small business owners, but with the right tools and knowledge, you can minimize the hassle and maximize your returns. In fact, according to a survey by the National Small Business Association, 93% of small businesses use a professional tax preparer or tax software to help with their tax filings. So, how can you get through tax season and come out winning? We have a few suggestions below to set you up for tax season success!
To make tax season go as smoothly as possible, staying organized and on top of your finances throughout the year is important. This means keeping detailed records of your expenses, invoices, and receipts and regularly reconciling your accounts. This may seem like a chore. However, there are many tools available to help you with this, including accounting software like QuickBooks or Xero, receipt tracking apps like Shoeboxed, and expense management tools like Expensify.
Familiarize Yourself with Tax Law
Tax laws can be complicated and overwhelming, but there are many resources available to help you navigate them. The Small Business Administration (SBA) offers a wealth of information on taxes and other aspects of running a small business, and the Internal Revenue Service (IRS) provides a variety of tax guides and publications.
Stay Up to Date
Tax laws are constantly changing, so staying informed about any updates or revisions that may affect your business is important. For example, in 2021, the IRS extended the tax deadline for individuals and businesses to May 17th and provided relief for those receiving Paycheck Protection Program (PPP) loans.
Consider Hiring a Tax Professional
If you’re not confident in your ability to prepare your own taxes, it may be worth hiring a tax professional to help you. In fact, according to a survey by the National Society of Accountants, the average cost of preparing a small business tax return is $442. There are many tools available to help you find a qualified tax professional, including the IRS’s directory of tax return preparers.
Use Tax Preparation Software
Tax preparation software can simplify the process of preparing and filing your taxes and help you identify deductions and credits you may have missed. Some popular tax preparation software options include TurboTax, H&R Block, and TaxAct.
Cash flow can be a major concern for small business owners during tax season. Fortunately, many financing options are available to help you cover expenses and manage your cash flow. Some common financing options include business loans, lines of credit, and invoice factoring.
Before applying for any financing, it’s important to do your research and understand the terms and conditions of the loan or line of credit you’re considering. This includes reviewing the interest rate, repayment terms, and any applicable fees or penalties. At ByzFunder, we want to help you succeed this tax season, and we do that by offering fast, simple, and secure financing within 24 hours of applying! That’s enough time to get your cash flow flowing and cover all unexpected charges. Moreover, we understand that each business is unique and offer bespoke financing options to match your needs.
With the right tools and knowledge, you can tackle tax season confidently. Minimize stress and maximize returns by staying organized, familiarizing yourself with tax laws, and using the right financing options. Remember to stay informed, seek help when you need it, and always do your research before making any financial decisions.