Just about everyone—business owners, accountants, individuals, and more—wishes tax time was a little simpler. But it’s all too tempting to shove it to the back of our minds until tax season rolls around again. Luckily, we’ve compiled a list of some important things you can keep an eye on all year round for a headache-free tax season next year!
Keep reading for our mid-year business tax review checklist.
How to Streamline Your Business Tax Review
If you want tax time to be a breeze (or at least as breezy as tax time can be), now is the perfect time to check in. With a mid-year business tax review, you’re setting yourself up for success down the line. Here are some key things to check in on:
Keeping Things Separate
If you’re seeing regular income from your business, it’s time to separate things out. If you didn’t do this when you first opened your business, now’s the time—open up a separate bank account for your business. You could also opt for getting a credit card specifically for business expenses under your existing account. Either way, keeping your personal and business finances separate will make filing taxes so much easier.
Stay on Top of Quarterly Tax Payments
Parting with some of your money four times a year might feel like a big (and frequent) loss, but it’s beneficial for you in the long run. When you make quarterly tax payments, you avoid paying out a much larger lump sum later. Not to mention financial penalties come with failing to keep up with quarterly tax payments.
Update Your Records
Don’t wait until tax season to get all your records up to date. That’s a recipe for extra stress and even mistakes. Right now, you should have about seven months of business activity to work with—a lot more manageable than twelve months! Double check your records and make sure things are in order.
Invest in Your Business
Look ahead to the next five months. Is there a piece of equipment your business needs? Some outdated tech that needs replacing? An ad campaign you’ve been dreaming up? After reviewing your business’s cash flow, think about ways you can invest some of that money back into your business. A lot of these investments can benefit you come tax time!
Feeling Overwhelmed? We Can Help
If you’re acting as owner, CEO, marketing manager, HR person, and accountant for your business, it might be time to ask for help. Banks, Finley, White & Co. specializes in all things small business—including accounting and taxes. Visit our website to check out more helpful resources, or reach out to us to start talking about how we can help your business. We look forward to serving you.