It’s officially a new year, which means the tax season is over — and there’s a pending deadline for your 2018 business taxes.
It can be difficult to file when you haven’t followed best practices in the prior year, but the great thing about the start of a new year is the chance to wipe the slate clean and stay on top of your taxes so that filing for 2019 will be a breeze. It’s also the time to upgrade your teams and software to better manage your finances. Follow these four tips to prep for the next time your business taxes are due.
Begin With Better Software
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Some people use Excel or basic software applications to track their tax information, which for businesses includes all your income and expenses. Unfortunately, these programs either have limited functionality or require an expert to create, proof, and use formulas to accurately record data. This process can be slow and prone to errors, and in some cases, can require an entire team of new personnel to use the system.
Invest in better software to optimize your tax filing process. Look for a program that helps organize, track, and file taxes specifically for businesses. Also, make sure your employees know how to use the system and are doing so consistently and accurately.
Track Interest Rates
The U.S. tax system underwent some changes in 2018. Namely, new interest rates are in place. This affects what you owe and thus how you need to budget for 2019. Review the new interest rate changes as well as other rules, such as the penalties for paying late or filing incorrectly, to ensure you don’t misstep as you track information throughout the year.
Onboard New Personnel
You might hesitate to hire personnel to manage your finances, but this can be a huge benefit for companies. In fact, many business owners either fail or lose their passion for work because they’re stuck managing things, such as taxes and reporting, that are better left to a pro trained in that area.
Onboarding personnel just to manage finances is an essential part of expansion, but even mom and pop operations can benefit from an expert on staff. Especially if you’re struggling with tax issues, professional help is often the best way to a better outcome. Not only will you not have to worry about spending days with your nose in a ledger, but you’re much less likely to make a mistake on your taxes with a trained eye on your side.
Seek Seasonal Help
It’s a good idea to delegate tax tasks for your enterprise, but that doesn’t mean you need to launch a new department. Another option that’s more affordable for many entrepreneurs is to outsource tax responsibilities to a third party as needed throughout the year. For example, some companies record financial data throughout the year but then pass things off to another business that handles the filing process.
Tax season can be stressful, but the new year is the perfect time to start over with good habits. Regardless of how you managed things in 2018, you can follow the tips outlined above to have an easier time with taxes when they’re due in 2019.
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