How Start-Ups Can Minimize Taxes – A Quick Guide on Tax Services!
- September 28, 2017
- Posted by: jd-admin
- Category: Blog, Taxes
This is an age of entrepreneurs who like to venture into the big world of business and make it big. They come up with innovative ideas, never-seen-before products and services to create a benchmark for others. While the idea of having a full blown business is fascinating, one needs to consider some safety measures to survive and succeed. Financial management is one such tricky thing that can either boost or blow any business. To make sure that they don’t end up in a messy financial situation, Start-ups need to invest in bookkeeping and tax services.
Bookkeeping and tax preparation are some of the worst challenges faced by all start-ups. Lack of knowledge about tax services for small businesses can actually lead to unnecessary tax payments as opposed to making huge profits. Therefore, it becomes important to plan your taxes in advance so that you can relax during the tax season.
A Quick Guide to Solve the Taxation Dilemmas of Start-Ups:
Plan taxes in advance: You can choose bookkeeping in a physical file or store financial statements digitally, the choice is yours. However, tax preparation is a yearly affair as you need to store all receipts, bills, expense records throughout the year. These records are a key to maximize allowable deductions and minimize payable tax.
You can either save everything on your computer or maintain a file for recording the expenses, incomes, pending bills etc. Another thing that helps in a big way is to separate employee and contractor tax information. As there are different tax rules for both, you should deal with them separately. Accuracy in bookkeeping helps you to deal with an IRS audit without any hassles.
Up to date financial statements are a must: Financial statements help you organize your investment and give detailed information about expected profits, liquid money, revenue and permissible tax exemptions. Therefore, maintaining financial statements is a good habit for all kinds of newly formed businesses. It streamlines the tax filing process and helps tax service provider to minimize taxes.
Use customized accounting software: There are many accounting software available in this digital age however; you should go for the one that suits your business, budget and people who operate it. If you are into products then go for online bookkeeping software that offers inventory management. On the other hand, software that offers automated billing service is beneficial for all kinds of businesses. You must keep separate record of your personal and business expenses to ward off any kind of confusion or taxation dilemmas.
Go for an experienced accounting professional: Well, it is always advisable to choose a Certified Public Accountant who can sort out your taxation tight spots which cannot be expected out of accounting software. An account expert is updated with changes in tax laws and thus prepares your financial statements in a way that minimizes tax payments. This is the best way to avoid tax penalties and streamline business processes.
Hire a tax expert: When it’s about hiring a tax expert, you need to check the tax professional’s experience, expertise and budget. A qualified tax expert would be the key to minimize taxes and help you make big savings for your business. It is always recommended to discuss your tax planning and other confusions with the tax service provider to rule out any surprises related to taxation.
If you are a start-up in Austin TX then Escobar & Associates is a renowned name to collaborate with. We help businesses make tax preparation in a way that they make big savings on taxes without unnerving them.
To know more about our tax services in Austin, feel free to reach out to us!!