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At this point, you can’t afford to feel like you’re unprepared for tax season. Make these moves ASAP if you’re in that boat. [[{“value”:”
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Whether you’re filing an individual return or a business return, taxes are due this year on April 15. But if you’re a small business owner, you may, at this point, feel like you’re in over your head. Data from Adobe finds that only 1 in 3 small business owners feels prepared for tax season. More specifically, 19% of small business owners feel completely lost and unsure where to start on the tax-filing front.
But at this point, there’s only about a month left to file your taxes on time. So if you’re feeling overwhelmed, do these things ASAP.
1. Line up tax help
Maybe you thought you could tackle your small business taxes alone because you’re good at navigating tax software and your company doesn’t have so many accounts and expenses. But while going it alone could save you some money, it could also result in not just a very stressful experience for you but also a major mistake that either costs you money or gets your tax return audited.
At this point, it may not be too late to find tax help for the season. But go out and find that help immediately. One thing you may want to do is talk to fellow business owners in your area and see if they can recommend a professional with small business experience.
Remember, the nuances of filing a small business tax return differ from those of an individual tax return. So you definitely need to work with someone who knows how to file small business taxes specifically.
2. Get your paperwork in order
A tax professional may be able to take over the filing process so you’re not forced to tackle your return solo. But that professional won’t be able to do their job if they don’t have access to the right documents and files.
So in the coming days, take the time to gather paperwork like bank account statements, credit card statements, and other documents pertaining to money that flows in or out of your business. The more organized you can get yourself, the easier it will be for the person you hire to complete your return by the April 15 deadline.
3. Consider a tax extension
There can be serious penalties for failing to file a tax return by April 15. If you don’t think you’ll be able to get your small business return done on time, ask for an extension by April 15. It will automatically give you six extra months, which gives you added time to line up help.
That said, a tax extension won’t give you more time to pay your tax bill. If you underpaid your taxes in 2023, you could be penalized on any sum you owe and don’t pay in full by April 15. You’ll also rack up interest on that sum. So if anything, you may want to see if a tax professional can at least do a preliminary review of your taxes and suggest an estimated payment to send in by April 15.
It’s easy to see why the process of filing taxes can be overwhelming for people who own their own businesses. But make these moves ASAP so you don’t end up botching your tax return or incurring penalties in the course of filing it.
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