Tax Time is Coming

If you business is new and small, tax time might seem far away, but it will be around the corner before you know it. There are a few steps you should be taking if this is your first filing for the business. Even though your business may be still taking it’s first breaths the tax man has no sympathy for the long hours you are spending getting things moving. A little time each week reviewing income and expenditures is time well spent. You also might notice expenditures that need attention other than for taxes

Assembly of all the capital costs of starting the business should be carefully assembled and filed for review by your tax preparer. Review all of the pay role and be sure that you have met the withholding requirements.

If you have state and local sales tax requirements review your payments
Get everything together and make an appointment with a qualified local accountant who handles tax preparation. Check with business friends for recommendations and ask about results produced.

It is important to have records orderly filed. The preparer will probably charge by the hour and sorting records for you will be costly. Be sure to get an estimate of the cost before you commit to anyone.

Assuming you have started the new business in 2010 it is unlikely that taxes will be owed unless you are somewhat special in your business skills. There may well be a tax loss that can be carried forward into future years. Be sure to ask about this and understand how it works.

You may think that the money made is small and you can figure it out in this your first year—Wrong –Get good help and get filed correctly. Next year might be when you can figure it out for yourself when you have the previous years schedules correctly filled out and filed as a guide.

I never thought it was a smart thing to prepare my own tax submission. As I got a few years into business I involved myself in the preparation, which in a later year helped me catch a big mistake in the preparation. There are plenty of neighborhood accountants who can handle your first year filing inexpensively. Be sure to get references and ask all the questions you can think of no matter how dumb they seem. There are no dumb questions when it comes to taxes. There are only dumb answers.