Business taxes can eat away at your profit margin. Companies often do not consider their business taxes as part of their overall finances. This is a mistake. Having a comprehensive tax plan is crucial to paying the correct amount of business taxes.
What Is a Comprehensive Tax Plan
A comprehensive tax plan looks at the company’s finances and identifies ways to save money. Deductions and credits can help the company save money on business taxes in the long run. In addition, when you have a tax plan for your business taxes, you can plan your record keeping system.
Record Keeping for Business Taxes
Keeping records is an important part of getting the most out of your business taxes. An organized system will help you keep track of expenses. There are numerous software programs that help you keep track of input and output. In addition, your EA may suggest ways to keep track of pertinent information as well.
There are varying answers to the question, “How long should I keep my business tax records?” The IRS suggests that businesses hang on to tax information for seven years. This is because they have seven years in which to audit you.
What Are Compliance Requirements?
There are numerous compliance issues that need to be addressed by businesses. Employees, sub-contractors, and vendors all require forms and record-keeping. These may be city, state, or federal. Your tax professional will be able to address these with you.
Common Deductions For Business Taxes
The tax code can be difficult to read and intimidating. But many everyday expenses may be deductible. According to the IRS, some of the common deductibles are the cost of products sold, employee wages and taxes, rent or mortgage, marketing expenses, insurance, and travel and entertainment expenses. These deductibles will add up quickly. There are also many smaller tax deductions that your EA can help you work out such as utilities, supplies, and commissions.
Get the Most Out of Your Taxes
Don’t take chances with paying higher business taxes. Balanced Taxes will help you develop a comprehensive written tax plan so that your business does not blow its profits on tax bills. We will help you to develop a tax-saving strategy, assist with implementation, and periodically meet to review progress. We prepare business returns for a variety of businesses including C-Corporations, S-Corporations, and Partnerships. In addition, we are able to handle payroll and sales tax reporting. Contact us today.