Tax season can cause a panic, but not to worry. Thanks to Entrepreneur.Com's '6 Fundamental Tax Tips for Entrepreneurs,' we can help you maintain your entrepreneurial pride. Firstly, unless you're a certified accountant, we recommend getting professional help. You might be surprised by how much money you can save by asking for help. The article, "When to Hire a Bookkeeper or Accountant," also available through Entrepreneur.Com, can help those of us with a one-track mind (aka entrepreneurs) discover the option that fits for us - an accountant? A bookkeeper? Both? Tricks, like paying quarterly tax estimates, straying away from the W-2 way of life, consulting your accountant, and simply planning ahead can do wonders for your business.
For example, always separate business and personal expenses. It's easy for a first-time business owner to combine the two, so cut the tax-preparation cost from the beginning (and avoid giving your accountant a headache) and have two separate accounts. Another solid point presented in the article is to make sure you're forming the correct type of corporation; dissect the advantages and disadvantages of each corporation option, and analyze how they would apply to you specifically.
Entrepreneur.com's last piece of advice is essentially to "shut up and do it." Paying taxes is the law; you'll have to deal with it sooner or later - so why not sooner? This is the last instance in which you'd like to see procrastination succeed.
As stated in Inc.Com article on Outsourcing Bookkeeping, "Since accounting is not one of your core competencies, it may make sense, operationally and economically, to outsource all of your bookkeeping and accounting functions." Outsourcing will free up time for a business owner to work solely on their business, and can reduce operating costs.
April has come and gone before we know it yet again, and that means tax season has done the same. Come prepared and leave happy, because tax season is never the right time to take chances.