Every January, millions of Americans start thinking about the upcoming tax season. Come spring, pressure starts to mount, and before you know it- April’s here and so are your tax deadlines. Let’s face it, tax season is typically stressful for everyone, even those whose filings are relatively straightforward. Moreover, effective tax preparation Charlotte NC strategies are crucial for both individuals and businesses. With the right plans in place, you can better protect yourself from unexpected, uncomfortable situations that could put you or your company in financial jeopardy. By taking proactive steps to minimize tax liabilities, ensure compliance with regulations, and manage your finances wisely, you can rest assured that you’re doing everything possible to safeguard your bottom line and position yourself for success. So don’t hesitate to invest in the tools and expertise you need to make tax season a breeze in Charlotte and beyond.

As we approach the finish line for this year’s tax season, here are some tips and tricks for small businesses as they last-minute prepare and prep. 

Tax Prep Should Be Occurring all Year Round

For small business owners, especially those who are filing for the very first time, one of the best ways to stay prepared for any last-minute challenges, or issues, is to get organized and stay organized. It’s much easier to start off on the right foot than to try and play catch-up at zero hours. This philosophy is usually true of most things in life. 

Not sure where to get started? Get a game plan in place long before your first taxes are due. As a smaller business owner, you might mistakenly believe that it won’t be as hard (or complicated) to keep track of financial records. While this might be true to some extent, major corporations that remain successful usually have ironclad practices in place, because they understand the risks of not doing so. So yes, even smaller businesses still have a lot of responsibilities when it comes to dictating roles, and deciding how to track income, expenses, deductions, and other important financial documentation. First and foremost, decide how you are going to bookkeep. There are generally a few options for small businesses: 

• Hire someone, or multiple people, within your company to take on the role of bookkeeper(s). Then determine what software they’re going to use, and/or how they plan to bookkeep. 
• Hire a professional.  Whether a CPA or a Bookkeeper in Charlotte NC you will still be tasked with determining how involved they’ll be in the process. 
• Split the responsibilities between in-house employees and a professional. 

Always Have a Backup Plan

Every small business, even those that have been around for years, can make mistakes and fall victim to major (and minor!) oversights. However, as a first-year small business, you should prepare for the fact that there will be a lot of growing pains involved and the potential to make rookie mistakes. Whether or not you decide to hire a bookkeeper or another professional to handle your financial records, you should always have someone on the back burner just in case you need a professional to clean up any last-minute disasters (or simply have someone “sign off” or double-check your bookkeeping).  

Another tip? Don’t wait until the last minute to craft a backup plan. Give yourself time to vet various businesses and “interview” many before committing. Check their reviews on Google, their website, and how professional they look.  Is their mentality compatible with theirs?  Before doing so, you should make sure that you have compiled any questions that you have and ask about their services and level of involvement. That way, even if you don’t utilize their services year-round, you still have a professional team to fall back on, in case of a last-minute emergency.

You’ll certainly come to have regrets in some capacity the longer you’re in business. But one thing you’ll never regret? Planning ahead. 

Review Any New Tax Legislation 

Surprise tax legislation is notorious for getting small businesses in trouble. All it takes is one missed regulation or newly implemented law to throw a wrench at your otherwise meticulous record-keeping. Another reason to keep your ear to the street? Tax deductions! Just like in personal tax filings, deductions are your best friend, and one should always seize the opportunity to get returns of any sort. Truthfully, it is always in your best interest to keep current on policy throughout the year, however, when tax time arrives, take the proper time to double and triple-check. 

Know Your Deadlines

Whether you’re submitting your taxes alongside most of the country or have (for whatever reason) a different submission date, the importance of knowing your deadlines is paramount. Failure to submit can lead to serious consequences, including losing out on any sort of returns. Knowing when your taxes are due gives you a timeframe to work from. Additionally, with a timeline in mind, you can accordingly carry out preparations to get any other documents that you need, including those that might be a bit more involved to acquire. 

If you find yourself toeing the line, concerned about meeting deadlines, this is where having a backup plan and financial agency in your arsenal can be highly beneficial. A professional can walk you through your options, recommending the best course of action to take. Don’t be afraid to reach out for help if you’re feeling overwhelmed or need advice. Especially if you’re filing for the first time as a business. In the event that you miss the deadline for taxes, don’t panic, get help. 

Know the Taxes Your Business is Responsible For

One of the most common mistakes that small business filers make is not knowing what taxes they’re responsible for. When you file a small business, you face a myriad of different potential taxes including income, payroll, property, self-employment, and more. In order to avoid chaos when the tax deadline approaches, it’s advisable to verify what you’ll be liable for ahead of time. This will save you a lot of grief, and help you know what documents to save and preserve throughout the year. If you’re not sure whether a document will be important or not, it’s always best to be overcautious and save it just in case. At this point, you can either consult a professional for advice or conduct the necessary research to determine what’s necessary for each tax. 

Stay Calm and Take a Deep Breath

It’s no secret that tax season can be a real stress inducer. The pressure to get everything in order and avoid costly mistakes can be draining, even for those who have been doing it for years. Remember to go easy on yourself and don’t be afraid to ask for assistance if needed. When it comes to matters of taxes, it’s always better to be safe rather than sorry. 

At McGrant Tax And Bookkeeping, our team of tax experts is here to help answer all your questions about tax preparation services Charlotte NC strategies.  Please feel free to contact us today at any of our two locations or visit our website https://mcgranttax.com and book an online appointment or physical appointment.

This post is to be used for informational purposes only and does not constitute legal, business, or tax advice. Each person should consult his or her own attorney, business advisor, or tax advisor with respect to matters referenced in this post. McGrant Tax and Bookkeeping assumes no liability for actions taken in reliance upon the information contained herein.