Many business owners still feel the need to file their business taxes by themselves to ensure everything is correct. However, the results are often the opposite, and it backfires.
In the spirit of the Halloween season, we give you the three horror tax issues that frighten business owners!
Record Keeping Disaster
It’s not easy to track all the expenses, income, and other crucial records and prepare them by tax time. As a result, many business owners fail to provide accurate records, causing tax disasters. Poor record keeping is the most common issue taxpayers face, but it’s easily reversible. While you can use accounting software to make it possible, you might want to consider getting professional help from trained bookkeepers and tax preparers.
Misclassifying expenses can cause you more money than you expect. Taxes are imposed depending on the expense, and proper classification is important to reduce tax or even gain tax deductions and credits. If you’re not familiar with the ways you can lower your tax, you’re sure to misclassify most of your entries and miss the chance to reduce tax payments.
Late Filing Horror
Most business owners wait until the last minute and cram until it’s too late. Instead of slowly preparing their tax filing throughout the year, they wait until it’s just two weeks away from the deadline and then discover they are missing crucial records. If this is you, it’s time to change your habit now.
Business owners can avoid these horror stories with proper planning and tax knowledge. Instead of letting these scare you, go ahead and assess your situation to see if you’re at risk and determine what you can do to reduce that risk. Dodge these horror issues now by having a tax preparation expert! Contact us now and avoid these traumatic experiences.
Image by jannemei at flickr.com