Many small business owners have tax planning on their minds this time of year. Between the ever evolving tax code, documenting deductions, and properly classifying your employees, it’s natural to feel a bit overwhelmed. Here are a few tips to help you file your taxes accurately and on time.

How Small Business Owners Can Make Tax Planning Easier

1. Keep Documents Organized

Tracking expenses is necessary when making deductions. For instance, receipts will help you determine fuel costs and other expenses that can be deducted from your overall tax burden. Keep other pertinent documents well organized, including tax forms, so everything will be right where you need it when it’s time to file.

2. Research Possible Deductions

Make sure you're taking advantage of all applicable deductions. Along with fuel costs and business meals, you may also be able to deduct expenses related to your home office, including equipment, health insurance, airfare, and lodging. While deductions will make your tax burden manageable, you must follow the proper procedure to avoid an audit.

3. Hire a Tax Adviser

Seek out professional assistance to rest assured your return is accurate. A tax adviser will help you pinpoint applicable deductions while making sure you have the proper support documents if the IRS has any questions. A skilled accountant can also assist with other facets of your small business, including bookkeeping and payroll services.

If you need help with tax planning in Kailua-Kona, HI, turn to Daren Katayama, CPA. The financial adviser and his team have extensive knowledge of tax laws, which they’ll apply to ensure your return is free of errors. They also provide other accounting services, like financial planning and business formation, and have earned an A+ from the Better Business Bureau® for their family-oriented approach.  Visit the website for more information on their services, or call (808) 329-6635 to schedule a consultation.