The Treasury Department and Internal Revenue Service announced that the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from April 15, 2021, to May 17, 2021.
Meaning there are 35 days left until Tax Day!
As fellow small business owners, we get it. Your heart starts racing trying to make sure you’ve claimed everything correctly, haven’t missed a deduction and you’re not overpaying your taxes. The sheer complexity of taxes can seem completely overwhelming, particularly in your first few years in business.
We’ve worked with many business owners throughout the years, and we’ve learned that successfully running a business is about more than just offering a quality product or service. It’s also about making sure you have the right team in place, developing an organizational system that works for you and taking the necessary precautions to protect your business.
Having the right tax advice is one of those important factors that will truly make a difference. Below are a few quick tips for business owners:
Keep Thorough Records: While not always easy for busy entrepreneurs, maintaining good records is vital. Obviously, for tax purposes, accounting is essential. But, in addition to monthly financial reports, you’ll also want to document your corporation’s transactions and annual meeting minutes. Strong accounting and record-keeping not only helps you with your taxes but also helps protect your personal assets in a lawsuit or should you transition out of your business in the future. Keep a binder specifically for this information – and a digital copy never hurts. It’ll come in handy if you are audited or in a lawsuit.
Hire a Tax Advisor or CPA: Unless your business is an accounting firm, you probably don’t know the ins and outs of tax strategies. But ignorance is not bliss in this instance. The right tax strategies can save you literally thousands on your taxes each year. But who has the time to learn it all themselves and run a business? That’s where a good CPA or tax advisor comes in handy. They’ll help you maximize your deductions and keep as much of your hard-earned money as possible.
Support Your Business with Expert Advice: Running a business is hard work. But if you set yourself up with experienced professionals, you’ll be able to capitalize on their expertise (similar to a CPA and their tax strategies) and set your business up for success. In the financial world, this means hiring a bookkeeper or accountant who can help you understand the numbers and make good decisions for the future of your business. Your expert team doesn’t stop there. Choosing the right professionals – such as a financial advisor, insurance agent, local banker and lawyer - for your ancillary services helps make you successful.
Making the wrong choice can cost your business financially and often, in a major way. That’s why we are offering a FREE downloadable guide about how business owners can avoid the 11 most expensive mistakes.
And, if you are looking for the right lawyer for your team, look no further. We can help you set up the right business structure for your specific needs and goals, as well as develop and implement a plan to preserve your business assets in a multitude of situations. Schedule your free, 15-minute business plan consultation to learn more.