Being an entrepreneur is challenging enough without the added trouble of a huge tax liability hanging over your head. Difficulties with business taxes can be both stressful and expensive to sort out. However, one important thing to remember is that these problems will never go away on their own, so burying your head in the sand and avoiding the problem is not an option. Instead, seek out help for your tax troubles and manage them. Here are a few tips to get you started.
Choose the Right Software
One of the main causes of lost revenue in business is human error. Small mistakes can add up to big problems when tax time rolls around, which is why choosing accounting software that works for your company is an important task.
If your small business is still doing most of its accounting with pen and paper, it’s definitely time to step into the 21st century. Old-school accounting methods only serve to make things harder for you at tax time. If you’re in search of the right accounting or tax software for your business, there is no shortage of options available to you — some of them are even free to use.
Before you select your business’s accounting software, take advantage of free trials to make sure that it works for you. After all, it’s supposed to make your life easier, not harder.
Hire an Accountant
While it may seem like hiring another employee is an expense that your business cannot afford to shoulder right now, having one person whose sole focus is your company’s bookkeeping can mean huge savings when tax time rolls around. This is because business owners have to be focused on so many things that they are bound to make mistakes — especially when you factor in the lack of sleep and heavy stress burden that entrepreneurship carries with it.
If you truly cannot afford to hire a dedicated accountant or bookkeeper, definitely consider outsourcing the job to a CPA. People who work with numbers every day can streamline your business, show you where you’ve made mistakes, and help you not to make them again. All of this will ultimately save you money.
Talk to a Tax Resolution Specialist
If you have filed your taxes and you’re unable to pay your tax bill, enlist the help of a tax resolution specialist. Many business owners do not realize that the IRS actually has a number of resources and programs available to those who are unable to pay their tax liability due to a financial difficulty. If you are struggling with tax-related problems, getting professional help is a wise choice.
Sometimes, it’s possible for tax professionals to help you set up an installment payment plan to pay off your business taxes over time, or even to settle your tax debt for less than you actually owe. A tax resolution specialist can guide you to the program that is right for you.
Whatever you do, remember that tax problems must be solved and do not take care of themselves. You must take steps to improve your business procedures and avoid future tax troubles.
Photo Credit: isedsolutions
Hi, helpful stuff. I own a small business and I’m an investor. It’s really annoying – violating tax regulations being not aware of it. It can cut big from your pocket. Thanks for sharing the info, bookmarked!