By Anh-Minh Le
Taxes aren’t just something to think about in April. In fact, to make the tax season more bearable, it can be helpful to conduct a mid-year tax review to stay on top of this aspect of your business. After all, you may be dealing with multiple types of business taxes—including income taxes, employment taxes, and sales taxes.
Some planning now will not only make the weeks leading up to April 15 less stressful, but it could improve your bottom line.
Get organized: Make sure your receipts, business expenses, deductions, and other tax-related documentation for the year-to-date are in order. It’s easier to round up 5-6 months of paperwork now, than wait until December and find yourself scrambling to find a year’s worth. You can also organize as you go with Breezeworks. Remember to keep track of any business equipment purchases or facility improvements you’ve made in 2015. Doing so can help you figure out how much to spend during the remainder of the year.
Implement improvements: Is your current record-keeping system working for you? If getting organized is daunting, maybe it’s time to consider a change—such as asking for assistance, delegating the administrative staff to an employee (even hiring a part-time person if possible) or investing in tools that will make your life easier. Also, make sure that you’re utilizing all of Breezeworks’ features—like its ability to save invoices and receipts in one place.
Tax extensions: If you filed for an extension, you may have only a few more months to complete your return. For example, if your deadline is September 15, you may want to sit down now to start the filing process—so you aren’t putting things off until the last minute and then rushing. Doing so may result in mistakes, including overlooking deductions that could save you money.
Estimated payments: A lot of businesses make quarterly estimated payments. Knowing what your profits and losses are for the first half of 2015, and comparing those numbers to last year’s, can help you calculate your how much you’ll pay in taxes. The IRS has a section on its website that covers this topic.
Meet with a tax pro: If you have an accountant, scheduling a mid-year appointment might be worthwhile—and could save you money. S/he can advise you on tax-cutting strategies (e.g., making sure you’re taking advantage of all legitimate deductions). A professional should be able to keep you up to date on the latest tax laws, too.
The steps you take now can lead to a smaller tax bill when April 2016 rolls around—which translates into you getting to keep more of your hard-earned money.