Small business owners are working towards the filing deadline, which is March 15 or April 17 for many of them. Ideally, they are poring over the books and seeing some positive numbers. Nevertheless, there is always room for improvement in all areas. Now with a year under our belts with the new tax system, we offer a few tax tips for small businesses to adjust as they move forward into the second year of the Tax Cuts and Jobs Act.
3 Tips for 2019
Accountants are a resource for small business owners, but these tips from financial experts can help make sure the business is compliant and run efficiently:
Think about taxes all year long: Tax planning should be done on an ongoing basis rather than annually or quarterly. Waiting until the last minute can make the process more stressful, complicated and can limit money-saving options.
Stay up to date on the laws: This can include staying up on the news or speaking with an attorney about any key changes that can affect a business. This will also enable the business owner to better oversee their tax professional.
Do not make assumptions: Tax planning does involve some guesswork, but it is unwise to plan on laws changing, tax breaks to pass or other changes in policy. Any miscalculation can mean an audit or some other course adjustment that will cost business owners more money than they would otherwise pay.
Legal guidance is often necessary
While the IRS says it will be somewhat understanding with businesses who are filing under the new system for the first time, there may be disagreements over the calculations. An attorney with experience handling tax disputes or audits can be a tremendous asset for small businesses facing these and a wide variety of other-tax related business issues.