Five Tips for Filing 2021 Taxes as a Small-Medium Business

From compliance to goal-setting, let’s explore how filing 2021 taxes can keep your business on track for success!

Complying with federal tax laws and having a thorough understanding of your financial standing are two of the most important reasons your accounting records should be prepared with keen accuracy. While there’s a certain amount of pressure that can be associated with filing taxes, remember, you don’t have to go at it alone. Check out these five strategies for preparing your small-medium business (SMB) for the 2021 tax season and if you would like some support in taking the next steps, consider reaching out to our tax professionals who can ease the burden of filing taxes.

1. Maintain compliance

Tax season shouldn’t initiate crunch time at the office to get your records in order. Accurate accounting should be integrated into the company’s daily practice in order for a business to meet accounting standards. Timely and accurate bookkeeping not only offers real-time implications but also makes compliance a cinch.

Furthermore, if your business is ever unexpectedly hit with an audit, imagine how much more confident you will feel knowing your accounting practices have been implemented with fidelity.  Rather than approaching filing taxes as a singular event, strategically address tax compliance as a daily practice – start preparing for tax season today and every day moving forward. You may even consider utilizing online bookkeeping to make compliance a breeze for your SMB.

2. Understand your liability

Preparing for tax season requires more than a little homework and failing the test could have huge implications for your company. Tax law is complicated and tax season is not the time to study up on the filing process and timeline. For SMB owners, this can be an overwhelming and complicated process. Enlisting the professional support of a dedicated accountant can help get returns filed properly and on time each year.

3. Utilize deductions and credits

Staying on top of your business expenses throughout the year will help you only pay what you owe. Outsourced accounting services that precisely reflect these numbers provide opportunities for your business to save via deductions and credits.

Let’s brush up on these terms. “Deductions” reduce taxable income and “credits” reduce the actual tax. Accounting specialists can interpret these differences for you and help accurately report how much you owe Uncle Sam.

4. Prioritize wisely

Maintaining your finances should be your number one priority as an SMB owner. Work processes, transaction recording systems, knowing which accounts to separate, keeping track of documents, and ensuring all is in order takes time and effort. For peace of mind, business security, and the freedom to pursue your company’s growth more fully, consider an automated system to manage this for you throughout the year and especially during tax preparation season.

5. Keep sight of your goals

Tax season isn’t the only time to examine your bottom line and how it reflects both your short-term and long-term goals. The time and energy you spend on the back office tax preparation could provide information to impact the overall success of your company in a big way. An online bookkeeping service with support from live, accounting specialists could help you interpret the critical data needed to propel your business to the next level.

Next best steps

Decimal provides managed, online bookkeeping with real-time accounting experts to answer questions and provide guidance. Decimal will help you make the most of your financial data to further your business goals year-round. With up-to-date financials and a proactive accounting team looking for ways to improve, your business is in good hands. Talk to us to get a free consultation and see where we can improve your accounting operations so that tax season is as easy as can be. 

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