If you are not a CPA and if you do not have experience in finances, accounting, taxes, etc., you will likely still have plenty to learn about saving money when it comes to taxes. When tax season arrives and you do not have a solution in place to help prepare you for the season, you may find yourself facing several penalties.
Thankfully, there are things you can do to protect yourself from those awful penalties. When you take the proper steps this tax season, you will be able to reach optimum tax-filing efficiency.
Bring In The Help
No one should take taxes lightly. If your tax payments are inaccurate or if they are late, you can face a significant amount of penalties. There are various resources that you can use to successfully manage your business accounts and your taxes.
Create A Calendar
We understand that you are a busy owner, and you have plenty of things on your plate. However, it is important that you are always aware of what is going on with your taxes and your accounts. We suggest that you create a calendar that has all the important dates about taxes. You want to be fully aware of everything that is coming your way, and one of the best ways for you to do this is to create your own tax return calendar.
What Tax Credits Do You Qualify For?
If you have ever scratched your head looking for answers to all of your tax questions, you have probably found various pieces of information from a variety of sources. When you find the right sources, you will be surprised and likely overwhelmed about all the potential small business tax deductions you may qualify for.
Avoiding Tax Penalties
Many small business owners are always looking for ways that will allow them to save money on their taxes. This is definitely not a surprise. Thankfully, there are various ways for small business owners like you to save money and lower how much they are obligated to pay. While this may require a little extra work, there are some tax penalties that you can avoid.
Penalty #1: Filing Your Taxes Late
If you are hit with a late filing penalty, you will usually be faced with a 5 percent fee of the taxes you did not pay for every month that your tax return is late. When will the penalty go into effect? The penalty will usually begin after the due date for your taxes has passed. You should always file your taxes on time, or you can ask for an extension.
Penalty #2: Paying Late
If you pay your taxes late, you will usually be hit with a penalty that is either 1 percent of one-half of the unpaid taxes.
Do You Sell Services Online?
If you sell products online, you need to know how to make your way through the major sales tax landscape. We encourage you to learn how to determine what tax actions your business are responsible for. When you know what tax actions your business is responsible for, you will be able to avoid the unwanted fines, penalties, and other major consequences.
As the owner of a small business, you know how unpredictable things can get. There may be a time when you will miss a deadline, but did you know that you can ask for the penalty to be waived? It will certainly be worth it to ask for your penalty to be waived if you do miss a deadline.
For additional information on tax efficiency, please do not hesitate to contact us today.