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10 Tips to Make Business Tax Efficient

By: Ron Finkelstein

Does the thought of preparing a tax return for your small business make you cringe? Does inspiration fail you while you wait until the last minute? This small business guide to tax deductions can help prevent procrastination until the last minute.

Make Room in Your Calendar: People often procrastinate because their schedule is too cluttered. Take a look at your calendar and pick a day to dedicate to doing your taxes. This may require closing down the operation for the day or hiring extra staff to substitute that day.

Bring on an Accounting Clerk: If you need to employ more people to complete the work, you should do so and complete the work in time. If necessary, you can hire a bookkeeper. The bookkeeper can help you to organize your business works and accounts such that end of year taxes are no longer a nightmare.

A Massage or Other Nice Reward: can be a great motivator for a job well done. Choose something such as a family getaway or a day at the spa to increase your motivation to start on your taxes.

Buy a Tax Software Program: This investment automatically performs many of the routine computations needed to complete a tax return. There are many software programs available, and most contain all the forms necessary to streamline tax preparation.

Find an Accounting Professional: The complexity of the financial issues your operation faces will increase as your business grows. Having the right help with your accounting and finances can save you hassle, frustration and mistakes. Accounting professionals can even provide more general business advice such as handling cash flow issues and tax tips.

Remember to Pay Yourself: Here's an easy way to determine just how valuable you are to the company: For the fiscal year, calculate your profit after expenses, then divide the figure by the number of hours you worked. This determines your hourly pay rate. Then, determine your tax refund divided by the number of hours that are required to finish the return. If this amount works out to more than or the same amount as your hourly rate, it will likely be enough to motivate you to prepare the tax return.

Ask for an extension: Most heads of small firms don't have any spare time. However, putting off filing can bog you down in guilt, so that you don't really derive much benefit from putting potential filing time into other company business. Consider asking the IRS for an extension.

Join a Tax Preparation Course: When people don't know what they need to do, it slows things down. In order to feel more knowledgeable and confident, it is helpful to take a day-long course in preparing taxes for small businesses. The IRS and many other associated organizations are offering free workshops online for small business owners. The main topics that are discussed in these workshops ranges from revenue, expenses, electronic tax filing to recordkeeping and employment taxes etc. Other related issues are also discussed here.

Time for a CFO?: As the company grows, so do its financial matters. There comes a time when a staff accountant may no longer be enough for the company. The company's management team may be spending a great deal of time making financial decisions, taking away from their other duties. Or the company, in its quest for additional growth, may desire to offer public stock or raise additional capital. At this point you may want to consider hiring a CFO.

Baby Steps: Reflect on the start-up of the company. If you had stopped to consider every task necessary to begin the business, you probably would have never have started the business. So, start small. Begin with an easy task like organizing files and continue from that point.

People never have fun when they have to sit down to file taxes. When you put this tax off, however, you end up with more stress than you would have completing your tax return. Get rid of all of that extra stress. Don't procrastinate any longer. Get rid of all the stress before April so that you can relax.

Article Source: http://www.articlesnatch.com

About the Author:
Ron Finkelstein is NOT a Tax Attorney or an accountant. He is merely a small business owner who has paid a lot of money over the years to learn a whole lot about The Most Overlooked Tax Deductions, how to pick a tax attorney, and How to save a bundle when filing business taxes.

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