Just because tax law can be complicated doesn’t mean you have to get overwhelmed.
Here are some tips on how to manage your taxes year round.
Think about taxes all year long. Small business owners should not treat taxes as a once-a year event. Rather, tax planning should be a year-round activity. Waiting until the last minute makes tax preparation more complicated, and it limits your money-saving options.
Hire a pro. Experts say a knowledgeable Enrolled Agent is well worth the expense.
Tax laws are complex, and they’re difficult for many busy small business owners to weed through.
A professional can identify tax breaks and deductions you might otherwise miss.
Be aware. Even with the help of a skilled professional, a small business owner must keep up with changes in tax laws. Read the business papers and keep up with Congress’ work on tax laws.
Tax planning, to some extent, is a gamble. Although historically,
Congress has always passed the tax-extender bill at the last minute, there are no guarantees. Never make business decisions assuming that tax breaks will pass.