Before moving full steam ahead into tax season, it's important to understand how your company's legal structure can impact your taxes. Guidelines vary significantly, but here are a few to get you thinking. Visit IRS.gov for details related to your business structure or discuss with your accountant--they should have this under control. For more information on tax prep best practices, download our End-of-Year Tax Guide and Checklist.Read More
Before you tackle taxes, get the right financial team in place
The strength of your company’s financial strategy begins at the top with executive management, but without a cohesive team of financial experts, cracks will begin to appear in foundation of your company’s financial practices. As you consider how to best structure your financial team, focus on the contributions of your bookkeeper, your accountant, and your payroll manager, as well as financial analysts and tax accountants.Read More
Why is it that so many companies dread the end-of-year tax process? For many, it’s a scattered, painful, and overly time-consuming process: information isn’t organized in one central location and, often, companies aren’t quite sure what information they need to compile (no matter how many years they’ve been in business and paid taxes). Additionally, company leaders prioritize most other things over taxes so they push off anything tax-related until early March, not realizing they are missing crucial data that requires time and effort to compile.Read More
Paro’s end-of-year tax guide and checklist provides a detailed account of every must-have item for your business this coming tax season, as well as an in-depth approach to what successful businesses have been doing year round to mitigate their tax liability come end-of-year. There are a variety of things you can be doing to prepare your business for tax season, and Paro's tax experts know how to find the solution that’s best for your company.Read More
Tax season is cooooomiiiing! At this point, you should have a pretty good idea of how your business is performing, and specifically whether you'll end the year profitable or... not.
It's important to talk about those tough years when your business has a Net Operating Loss (NOL)—when it loses money. With the proper tax planning, you can use some tax judo to mitigate the monetary loss of your business by offsetting it with tax savings. This can take the form of a refund of prior year taxes paid, or an offsetting of future taxes owed. [If you know your business will be profitable this year, check out our article, Tax Tips: Writing Off Asset Purchases, which talks about strategies to decrease your tax liability.]
When you are growing a new business, it is common to start off with a few years of losses. Even more established businesses, no matter how well they’re run, fall on hard times. Macroeconomic, environmental, or political factors can all have an adverse effect on a business, and these can be difficult for an owner to predict and impossible for them to control. Small/midsize business owners can buy insurance to protect themselves from some environmental factors, but some things, like a housing crisis, can't be underwritten.Read More
Ah… summer, the time for barbecues, the beach, concerts, and books. While I’m sure that new John Grisham novel is calling your name, you know what’s screaming it? Your business’s books. That’s right, summer is a great time to evaluate how your business is performing and take care of some of those unsexy tasks that just need to get done. So, when summer hits each year, trigger these 4 to-dos.Read More
For many business owners, taxes are a burden to be brushed aside until the last minute. The recent corporate and personal tax return deadline was undoubtedly accompanied by plenty of anger, stress, and headaches on the part of business owners and tax preparers alike.
Almost three-fourths of small business owners say federal taxes significantly affect their day-to-day operations, but most of those business professionals know relatively little about the tax world. Tax code is so complex — the federal tax code is about 75,000 pages — that people devote their entire careers to understanding the intricate details of the system.
It might be too late to fix this year’s tax woes, but it’s never too early to start planning for next year.
Read the full article here on Tweak Your Biz.
This blog also appeared on SMB CEO, which provides resources and knowledge for the small business CEO.
Benjamin Franklin famously quipped that only two things are certain in life: death and taxes. Given that inevitability, it might seem surprising that so many business owners struggle during tax season.
Entrepreneurs are typically so focused on growing their companies’ products and services that taxes become an afterthought. Most people don’t think about taxes until the last minute, so they’re not ready when it’s time to file. This ends up making the process more stressful than it needs to be.Read More