In business
reducing expenses to boost the bottom line is key.
You can save money on filing your
business taxes by following the suggestions below.
1. If you decide to use an
accountant to prepare your taxes shop around and
find someone who is willing to give you a
competitive price.
2. Find out if your
accountant charges by the hour or by the number
of filings that has to be done. Compare
the cost for these two options and chose the
least expensive one.
3. If
you decide to use an account to prepare your
taxes
organize and categorize
your expenses before you get to their office.
Be sure to bring all documentation with you so
that you don't take up more of their time in
multiple trips for which they will charge you
(if you're being charged by the hour).
4. Use
an
accounting software or a
spreadsheet to capture and analyze all of your
expenses before you get to your accountant.
This will prepare you to answer any questions
and help your accountant to get through the
process very quickly which will be less
expensive to you if you're being charged by the
hour.
5.
If you consider yourself savy enough you can
utilize an
online service to prepare
and file the taxes yourself. The online
services that are available today (such as
TurboTax) walk you through the process,
step-by-step, and guide you through answering
every tax question and give you the opportunity
to get every deduction you're entitled to.
These services also get your tax documents
reviewed by actual tax attorneys before filing
with state and federal agencies. They are
far less expensive than hiring an accountant.
The average cost is $99.00 per year. You
can start and stop the preparation and come back
at anytime to finish it. Your data will
always be secured online and you can come back
at any time to get copies of your tax documents.
6. Know what
expenses you can deduct and
take advantage of them.
7. Follow these
IRS tax tips for
self-employed taxpayers.
8.
If you know that you will owe the IRS money file
your return on time or request an extension and
avoid the late filing penalty.
9. Consider free tax filing
software. This
IRS website list free tax
preparation software that are available to
people with certain income levels. This is
ideal for Sole Proprietors who meet the income
thresholds.
10. Beware of
fake IRS emails and phone calls
that can scam you out of your finances.
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