Tax time is fast approaching for businesses. The due date for federal business taxes depends on the specific type of entity in question. The Internal Revenue Service (IRS) notes that the business tax returns are due on the following dates for 2022:
- March 15th: Partnerships, S-Corporations, and multi-member LLCs;
- April 15th (April 18th Due to Holiday): Sole proprietorships, C Corporations, and single-member LLCs.
Businesses must ensure that their tax return is properly prepared and filed on time. You do not want to leave money on the table or face the risk of penalties. Here, our tax preparation accountants highlight five tax preparation tips for businesses.
1. Get Organized: Carefully Track Revenue and Expenses
It is a lot easier to prepare the taxes for your business when you are well-organized. Make sure that you carefully track your revenue and your expenses. Remember, business expenses and personal expenses should always be clearly separated. Business expenses matter. You do not want to face additional business tax liability because you forgot about certain business expenses.
2. Keep Your Payroll Straight
Running payroll for a business can be complicated. In recent years, the IRS and state tax agencies have stepped up enforcement of payroll regulations. It is imperative that all companies and organizations properly track their payroll. Doing so will ensure that your business is in compliance with the law and make it easier to prepare your taxes when the deadline comes.
3. Know What Tax Deductions are Available
Do you know all of the tax deductions that are available to your business? If not, you and your partners may leave money on the table. Tax deductions exist for a reason. When a business fails to take advantage of tax deduction, the effect is that it is paying more than it truly owes under federal or state law. A top tax professional with experience working with businesses can help.
4. Be Proactive: Waiting Until the Last Minute Cause Problems
The sooner you get a handle on the tax situation of your business, the better position you will be in. As a general rule, it is best to get started with your taxes as soon as possible. You do not want to risk waiting until the last minute. While the Internal Revenue Service (IRS) allows all individuals and businesses to get an automatic six month extension to file their taxes, that is not an extension on the deadline to pay.
5. Do Not Go It Alone—Seek Professional Help
Preparing taxes is complicated—especially for business owners and entrepreneurs. You do not have to do it on your own. At Williams Accounting & Consulting, we specialize in accounting and business tax preparation matters. Our team of business tax preparation professionals is devoted to ensuring that our clients receive cost-effective accounting, meet all of their state and federal tax obligations, and get access to every deduction that they are entitled to under the law.
Schedule a Confidential Consultation WIth a Business Tax Preparation Specialist
At Williams Accounting & Consulting, our tax preparation specialists have extensive experience working with businesses and entrepreneurs. If you have any questions about business tax preparation, we can help. Call us at 770-964-4100 or contact us online for a strictly confidential initial consultation. From our office locations in Atlanta and New Orleans, we provide business tax preparation services throughout the entire Southeastern United States.
