Two of the Biggest Tax Mistakes Small Business Owners Make
By: KOS Leadership
|April 15th is Tax Deadline|
For millions of Americans, April 15th is the deadline to complete their taxes. For businesses who file a Schedule C, solid planning can maximize and protect the value of their assets and minimize the tax burden. For the past few weeks, millions of business owners gathered their documents and opened up their books to their accountant teams, preparing for the inevitable payment to the IRS. Smart business owners realize that every decision made throughout the year could have tax implications. The opportunity to avoid making simple mistakes can make a tremendous impact to their overall net worth. Taxes certainly are an obligation, but making mistakes regarding them doesn’t have to be. Let’s take a look at two of the biggest tax mistakes businesses make.
1) Communicate with your CPA Firm Year Round
|Communicate with your CPA Firm year round.|
One of the biggest mistakes business owners make is only talking to their CPA firm during tax time. Communication with your accounting team can be the difference of paying more than you should on your taxes. Financial management should be a year round activity. It should not be limited to tax season. Monthly or quarterly strategy sessions should be scheduled in order to make sure business owners are up to date on any rules and regulations regarding tax laws that impact the bottom line of the business. Scheduling strategy sessions with your accountant can help businesses prepare for changes in tax codes and laws throughout the year, but more importantly can help the business run more effectively which leads to greater savings. Working together with your accountant can also help you keep track of all the deductions your business should be benefiting from due to complicated tax laws and prevent you from leaving money on the table at tax time.
|Cloud Accounting Services|
The vast majority of accountants believe that a comprehensive, real-time view of finances is essential for dispensing the best advice and saving money. The difficulty faced by most business owners is access to this information. Cloud technology is one way to maintain this and many CPA firms use cloud accounting technology which provides real time data and financial information and allows them to work better with their clients to avoid many tax mistakes. This assists business owners in maintaining an updated, comprehensive financial bottom line. Utilizing the technology of a CPA firm can lead to efficient bookkeeping, accurate accounting details and can help avoid accounting accidents that lead to audits.
We encourage feedback and are here to help. If you have any questions regarding this topic or any of the services we offer please visit our website: http://www.koscpa.com or feel free to call us at 847-580-4100.
Kessler Orlean Silver & Company, P.C.