It’s already April! Quick Tax Tips for Small Business Procrastinators
by Carrie Hinkel on April 4th, 2008
Are you a tax procrastinator when it comes to your business taxes? If you’ve yet to file your taxes with the IRS this year, then the answer is a resounding “YES”. Yipes! With less than two weeks until April 15th, you have a lot of work to do. Here’s what you can do to get your paperwork organized and your taxes filed on time and without penalties:
Get started - You’re already in a serious time crunch, so time is truly of the essence. Start gathering all your income and expense paperwork as well as any business receipts. Luckily, you can file electronically with the IRS and there are dozens of tax preparation software programs available to guide you through all of the forms. Of course, if you really feel overwhelmed, you can always hire an accountant, bookkeeper or take your paperwork to H&R Block and let them sort it all out for you! But, the important thing is that you do something. Remember, time is running out!
Take advantage of all your deductions - One of the great things of owning your own business is being able to get extra tax deductions. If you run your business out of your house, you can deduct the rent and utilities used for your office. If you take business associates out to lunch, dinner or drinks, you can deduct the restaurant bill. You can even deduct the expense of computers, cell phones, PDAs and more. To learn more about all the business deductions available to you, visit IRS.gov .
Be thorough - You may have waited too long to start your 2007 taxes, but that doesn’t mean you should rush through the filing process. Forms completed in haste can leave you paying more in taxes than you needed to, or getting an incomplete notice from the IRS. If you find yourself having to guess on the forms, then perhaps it’s time to hire a professional.
Stay ahead of the game next year - You may have waited a big too long to begin your 2007 taxes, but that doesn’t mean you have to get yourself in the same bind next year. Once you’ve wrapped up this year’s filings, make a pledge to plan ahead for your 2008 taxes. Organize your receipts in different folders, such as postage, office equipment, rent, utilities, phone bills, etc. You may even want to hire a bookkeeper to design a spreadsheet to make keeping track of income and expenses easier.
So, unless you want to end up paying late penalties to the IRS, you’ll need to buckle down and get started on your tax paperwork for 2007. But, don’t worry, it doesn’t have to be overwhelming or time-consuming or even stressful. If you feel you’re in over your head, don’t hesitate to hire a professional to either do the work for you or guide you through the process. And, hopefully, you’ll get started on your taxes a lot earlier next year!