Tax season is in full swing, and for many business owners, it’s a headache-inducing time of year. To help reduce stress during tax season, it’s important for business owners to take the time to gather and organize their financial information to effectively prepare for the filing process. Each year, BerganKDV helps numerous businesses with their taxes.. Here are a few important tips we tell our clients to consider when filing their business taxes:
Gather all necessary documentation.
The first step in preparing for filing is to gather all necessary documentation, including receipts, invoices, financial statements, and your business plan. This information will be used to prepare your tax return, ensure that you are accurately reporting your income and expenses, and identify potential deductions and credits. Keeping all documentation organized and easily accessible is crucial.
Take advantage of tax deductions and credits.
As a business owner, you may be eligible for a variety of tax deductions and credits that can help lower your tax liability. For instance, you may be able to deduct expenses related to research and development or claim tax credits for hiring and training additional qualified employees.
As you review your business expenditures and growth plans, determine whether you are eligible for any tax incentives offered by your state or municipality. To learn more about how to maximize the tax incentives available for your business, attend our upcoming webinar session with BerganKDV’s tax incentive manager, Matthew Carlson.
Consult with your tax advisor.
Tax laws and regulations are constantly changing, and it’s important to stay up-to-date on any new developments that may impact your business. Consult with your tax advisor to discuss any new tax laws or regulations that went into effect over the past year. For year-end 2022, this includes the American Rescue Plan Act, which contained provisions such as enhanced unemployment benefits, stimulus payments and small business relief.
Even if you thought you missed out on a benefit, such as claiming the Employee Retention Credit (ERC) during the pandemic, you may still have an opportunity to retroactively claim the credit. Consulting with your tax advisor will help ensure that you are in compliance with all tax laws and regulations.
Preparing for your taxes may not be the most exciting part of owning a business, but it’s an essential one. By gathering all necessary documentation, taking advantage of available deductions and credits, and consulting with your tax advisor, you can make the process as smooth and stress-free as possible.
At BerganKDV, we offer tax services to simplify the process for you. We’ve helped countless clients navigate their documentation, identify which tax incentives they qualify for, and perform tax compliance work so that they can focus on other business needs. Contact us today and one of our tax experts will reach out to you.