If you own a business, tax season can be stressful as you scramble to put your information together. But it doesn't have to be.
If you want to get a head start on your taxes, make sure all of your business transactions are recorded and categorized properly.
Without accurate information, you can't really file your taxes. You will need to make sure that your books match your bank records.
You'll also want to make sure that all of your deductions are organized. And, if you can, go paperless by digitizing your paperwork.
Not sure which expenses are tax deductible? Start with our Business & Deductions white-paper to know what you can and can't deduct.
The Tax Cuts and Jobs Act (TCJA) took effect in 2018 and it will change tax planning for C Corporation and pass-through entities.
The TCJA has completely changed some common expense deductions such as client entertainment, office snacks and employee transit.
If you're going to owe at least $1K in taxes, you'll want to consider setting aside money every month and making tax estimates through the year.
If you're not sure how much you'll owe in taxes, set aside 20% of revenue every month. Then, every quarter, you'll take 1/2 and pay tax estimates.
To avoid the temptation of dipping into your tax "holding account" and away from day-to-day finances, keep the funds in a separate bank account.
To get started, download our free eBook: How to Create Margin in Your Cash-Flow. It'll teach you our cash-flow accounting and budgeting formula.
Don't let tax season stress you. At FFC, we give you the resources to help you manage your cash-flow and a team of advisors to help you achieve your goals.