Let’s be honest – there was not a single business that remained unaffected by the pandemic. Not one.
Whether your business grew, stalled, or was nearing the point of extinction, these pandemic related effects to your business will also affect your small business taxes.
You may now be wondering exactly how these changes will specifically affect your taxes. Again, you’re not alone. We suggest the following three steps to get on the road to successfully managing your small business taxes:
1. Find the right accountant for your small business taxes
We may sound like a broken record here but finding the right accountant should be every small business owner’s number one priority! The right accountant will:
- Understand best bookkeeping practices and tax implications for your industry
- Have a continuing desire to learn and stay up-to-date with tax laws
- Communicate regularly with you
- Produce clear and timely reports
This close relationship with a good accountant will benefit your business in the long-term as they help you to grow and save money!
2. Know your tax liability
To begin, you must know the answers the following questions:
- What state is your business operating out of?
- What is your business entity?
- How many employees do you have?
- What are my business assets?
These answers will help in determining the amount of federal tax you will pay, as well as state-specific taxes. Your accountant can ensure that you are complying with state and federal regulations pertaining to your business.
Additionally, if you find that your tax liability is high, you may need to file as a different business entity, which your accountant should be able to assist you with.
Lastly, if you make estimated tax payments, be sure to make a schedule to keep track of them! The last thing you’d want is to pay penalties and interest on the money you’ve worked so hard to save.
3. Plan ahead
As 2022 inches near, there is no better time to get a handle on your small business taxes. These final months of the year will be crucial in determining your tax liability next tax season.
Our advice: Use this time of the year to make advantageous decisions with your money. You won’t regret it!
If you’re wondering what changes to make exactly, why not give us a call? During your complimentary consultation, David Alfano, CPA and Financial Advisor, will help you to make your next move. Feel free to email email@example.com or call 203.698.7700 to schedule your appointment.