Saturday, 30 July 2016

Common Tax Mistakes Small Businesses Should Avoid

Every business owner faces a lot of issues that require attention. Right from inventory management to marketing and training staff, there are several tasks that need to be managed for keeping the business running. With so many things at a time, it is often easy to make mistakes that can result in loss of time and money. In the middle of day-to-day business operations, it is common to overlook accounting processes like bookkeeping, tax planning and more. Wouldn’t it be great if business owners can outsource challenging tasks like tax preparation to professionals? This will allow them to pay attention to other aspects of their business and focus on growth. Get expert tax preparation advice from reliable CPAs in San Antonio for organized handling of your tax returns.

Here is a list of commonly made tax mistakes that you need to be aware of –
  • Lack of Knowledge – Business owners need to have basic knowledge of tax regulations, deductions, laws and more. They need to be aware that apart from IRS and state agency, they may also be liable for local taxes, sales taxes and other specialty taxes. New business owners in San Antonio should consult a local tax advisor to understand nature of taxes their business is liable for.

  • Record Management – One of the most overlooked tasks in any business is maintenance of proper financial records. Tax preparation can be made hassle free and smooth if you have up-to-date and accurate financial records. Tax preparation involves review of all receipts, payments, checks, card payments and other financial transactions over the previous year.

  • Mixing Business and Personal Accounts / Expenses – Small business owners make is failing to have separate business and personal bank and credit accounts. Totally separate accounts simplify tax time, reporting, and bookkeeping. If small business owners have common accounts for business and personal use, they are apt to miss deductible business expenses and fail to report income. Separate accounts make expenses and income easier to identify and help in preparing accurate balance sheet.

Make tax filing process for next year hassle-free and error-free! Get in touch with an experienced tax planning service provider in San Antonio for professional advice. Call 210 701 1040.