Helpful Small Business Tax Preparation Tips

Posted by Robert Freidson on December 27th, 2018

As a small business owner, it’s important to truly know everything about your business. Where large corporations might delegate all sorts of roles to various executives - small businesses often do not have that luxury. Whether it’s because they simply do not have the financial resources to hire consultants or advisors to handle certain issues, or because there is no expert in their particular network - running a small business takes a certain amount of grit and “do it yourself” (DIY) attitude.

That’s why small business owners, among the top priorities, should familiarize themselves as much as they can with small business tax preparation and planning. Working with the right tax professional can offer insight to not only your year-end taxes, but where to make improvements, what you can do to take advantage of tax breaks, cost controls, and the next steps to take going forward.

Understanding your own small business tax preparation and planning helps you get a “big picture” perspective on your business. You might find out that you are spending way too much on certain expenses that aren’t exactly panning out, or that you aren’t spending enough on a marketing strategy that is clearly very effective. Sometimes it takes sitting down and truly examining the numbers to see the big picture rather than being focused on day-to-day operations.

Small business tax preparation and planning can also lead to saving you money! There is no way you can’t feel good about knowing that there is more money to spend for you and your family, whether it’s for the holidays or a family vacation, because you were able to strategize your taxes in a way that ensured you saved as much money as possible. This often includes understanding your expenses and deductions in a very detailed manner, and making sure that you optimize your taxes to your advantage.

One issue to consider, which may be unpleasant, is internal theft.  Unfortunately, people aren’t always honest. It’s something we may feel uncomfortable even contemplating, especially when it comes to friends and family we have hired. The truth is that employee theft is much more common than one might think. While often times we might hire those we consider family or friends, employees might be stealing from you regardless of relationship. It may be rationalized and not meant to be malicious.  However, theft does occur. A recent study pointed out that the average amount stolen from small businesses is no small number - in fact, it’s over a million dollars! Having an unbiased eye review your books can save you tens of thousands or more!