Whether you’re an independent contractor or own a business with dozens of employees, preparing your tax returns can be complex and overwhelming. Even minor errors can result in missed deductions or — even worse — significant late fees, fines, and penalties. Below are a few key tax accounting and preparation tips to take the pressure out of preparing your returns.

4 Tax Preparation Tips for Small Businesses

1. Carry the Health Credit Forward

If you have fewer than 25 employees and provide health insurance, the Small Business Health Care Tax Credit can dramatically reduce your tax bill. If the credit exceeds your liability for 2019, you can carry it forward to the following year, potentially saving thousands of dollars.

2. Prepare Your Revenue and Expense Statements

Accurate and detailed earning statements reduce the risk of mistakes to ensure you get every deduction you qualify for. Fortunately, most small business bookkeeping programs feature tax accounting functions that automatically generate detailed reports.

3. Take the Section 179 Deduction

Section 179 allows small businesses to fully deduct the cost of capital investments at once instead of deducting its value over time. If you purchased new equipment, buildings, vehicles, or off-the-shelf software packages in 2019, this valuable deduction can reduce your exposure, leaving more money to put back in your business.

4. Enlist Professional Help

Even if your company is fairly small, preparing your taxes can be stressful and time-consuming. A business tax accounting professional will take the uncertainty out of filing, guiding you through the constantly changing code, finding deductions you might have missed, and helping you avoid trouble with the IRS.

Whether you’re launching a startup or run a local institution, Linda M. Shiraiwa CPA, PS Inc. offers the business tax accounting services and expertise you need. They proudly serve clients throughout Gig Harbor, WA, and will give your taxes the close attention they deserve. See their website for more on their tax accounting services, or call (253) 858-6030 to make an appointment today.