Taxes are an inevitable part of running a small business, no matter how much entrepreneurs wish otherwise. To make your payments less painful and ease the burden of tax management throughout the year, here are a few simple tips to keep in mind.

A Small-Business Owner’s Guide to Keeping Taxes in Order

1. Find the Best Structure

Different types of businesses have different tax rates and deductions. For example, S-corporations and LLCs sometimes qualify for a deduction on pass-through income. However, there’s no clear rule for which structure is best in every situation. It’s best to speak with your accountant to determine which option is better suited to your specific business based on your finances.

2. Know Your Deductions

Businesses can usually deduct major expenses like equipment, office space, and travel. An accountant or tax professional will help you find out exactly what is tax-deductible so you can track specific items throughout the year. You may also be able to deduct things like retirement contributions. Since this money isn’t taxed until it’s taken out of the retirement account, putting extra money away at the end of the year may help you even out your tax bills.

3. Keep Up With Records

Tax management is much easier if you spread it out throughout the year. Scrambling to get everything together right before the deadline will cause unnecessary stress and chaos. Stay on top of your taxes all year long by saving your receipts, tracking your income and expenses using a bookkeeping or tax prep software, and outsourcing to an accountant who can help you stay organized. When the time comes to file, everything you need will already be in one central location.

If you need help with small business tax management, contact Cloyd & Associates PSC in London, KY. The certified public accountant provides personalized financial management solutions for businesses throughout Laurel County. Whether you need help with your business tax return or full bookkeeping services, their friendly and knowledgeable team can help you make sense of the options and keep your business on the right track. Visit the company’s website to see a full list of tax management services, or call (606) 864-8110 to request an appointment.