When you are an employee, your employer pays your taxes out of your earnings before they even reach you. You also don’t have to file a tax return, as this is also taken care of for you. So, it’s not all too surprising that the majority of first time business owners can feel a little lost when it comes to the end of the fiscal year and they are left to complete their tax returns themselves for the first time. But not to worry. While the forms may seem confusing at first, there are various steps that you can take to simplify the process. Here are just a few steps that you will need to take to get you started in the right direction.
Consider Professional Help
The best way to simplify the process of filing your tax return is to hire the help of a professional accountant. You do not generally need to employ this individual year-round. Instead, you can pay them to complete a one-off return. Sure, it may come at a cost. But if you are extremely busy, it’s an investment worth making. You can also rest peacefully knowing that your return will be completed to perfection without errors or mistakes.
Don’t make the mistake of paying for business related expenses out of your own pocket. There are various purchases that you can deduct as expenses. These are referred to as “tax deductions” or “tax deductible” investments or purchases. The infographic from Triplog below highlights just a few common tax deductions added to small businesses’ tax returns!
Infographic Design By TripLog