5 Must Do's to Prepare for Taxes
Updated: Apr 1
It's October and it's almost the end of 2019. The year 2020 is around the corner which means there's not much time left for the year but there's still time to save money on taxes. Here is a list of 5 things you can do to save money on taxes.
1. File your 1040 Estimated Tax Payments
Many business owners don't realize that they get penalized if they don't submit an estimated tax payment every quarter. You could receive a penalty of 1% per month for the amount owed on your estimated tax payment. This can add up really fast by the end of the year and cause you to pay fees that can be easily avoided.
2. Have All Accounting Completed
The worst thing you can do is wait until the end of the year to handle the accounting for your business. You should have an Accountant who keeps the books in order throughout the year. If you don't, get one and get those books in order before you get those taxes done. Going to a Tax Preparer with incomplete or sloppy books could cost you too much time and money.
3. Keep in Contact with Your Accountant
Many business owners make the mistake of only speaking to their Accountant during tax season, but this could really hurt you. Keeping in contact with them at least every quarter allows you to stay ahead of the game and not get blindsided.
4. Have All Paperwork in Order
Keeping paperwork in order will save you time and money. Receipts, tax deduction letters, and other paperwork are needed to complete your taxes. Keep all of this stored in a safe place, ready to share with your Tax Preparer when tax time rolls around.
5. Contribute to Your Retirement Plan
If you haven't contributed much to your retirement accounts, make sure you do and try to max them out. Contributions can save significant money on taxes and help you prepare for retirement.
And that's it! Those are the 5 Things that you must do to prepare for taxes for your small business. Make sure to check out our blog, This How to Save Money on Taxes.
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