The end of the year is often a stressful time for small businesses, not least of all due to the frantic mess that is the coming tax season. Handling your small business’s taxes shouldn’t be a nightmare, however. It doesn’t even have to be a chore if you know how to prepare. Remember these 5 end of year tax tips for your small business to make the hectic times go as smoothly as possible.

  1. Start Organizing as Early as Possible
    Every business owner needs to understand that the key to a smooth and successful annual tax filing is organization. Keep your books and important financial documents organized, and you’ll ensure a smooth return at the end of the fiscal year. On the other hand, if you keep sloppy records and let important financial concerns slip through the cracks, you’re going to have a hard time. Start organizing as early as possible to set yourself up for an easy filing.
  2. Bolster Your Retirement Fund
    As you prepare for your annual tax filing, you’re faced with an opportunity that you should be sure to seize. This is the perfect time to give your personal retirement fund an added boost, so don’t hesitate to make contributions before you file taxes for your business. Whether you have a Roth IRA, a 401k or any other kind of retirement plan, decide how much to contribute at the end of the year in order to maximize your tax benefits.
  3. Get the Deductions You Deserve
    Business owners everywhere miss out on some of the best deductions of all due to simple negligence. Don’t let your business fall into the trap of missing deductions. Review your expenses from the past year and look for possible write-offs. Try to recall any traveling you’ve done over the year for business purposes. Have you made any investments in new office equipment or vehicles for your business? Are you working from a home office? Take some time to go over these and other important questions in order to determine whether you’re eligible for significant tax deductions at the end of the year.
  4. Take Care of Your Employees
    Don’t forget about your employees at the end of the fiscal year when tax day approaches. You’ll need to get W2 or 1099 forms for any employees or independent contractors who’ve worked for you over the past year, and this task needs to be completed by the end of January. There will be a lot of paperwork to collect, file and distribute, so make sure that you stay on top of deadlines as the year closes.
  5. Decide Whether or Not to Outsource
    You might be capable of handling your own taxes at the end of the year using a popular online service like TurboTax, or you might be better off outsourcing your tax needs to a qualified accountant. Be sure not to bite off more than you can chew. Handling your own taxes may help you save on accounting fees, but it could cost you a lot more money if you can’t file the most effective return. Decide which path is right for you, and proceed accordingly.