As 2017 already begins to draw to a close, it is time to start thinking about and preparing for the year ahead. If you are an entrepreneur, there are numerous matters that you need to start planning in order to have a successful year in 2018. One of the most important is your 2017 tax return. When you are a self-employed business owner, taxes can get complicated in a hurry. Rather than having your taxes withheld from every paycheck, you are responsible for knowing how much you need to pay each tax season.
As you begin to plan for filing your 2017 tax return, review this short list to ensure that you get started on the right foot.
Do you have record of all of your deductions/credits?
According to Global Resources Reviews, keeping track of your expenses and cash flow is essential. If you’ve lost track of receipts, invoices, and tax statements that you’ll need to include on your tax return, now is the time to locate those documents. Nothing is more stressful around tax time than to have missing receipts and other papers needed that help you to earn important credits and deductions. Preparing now will give you time to search through your records, and to request replacements documents if needed.
Do you have a trusted tax professional that can help you?
Even if your business is very small at the moment, trying to work on your own self-employment tax return can get messy in a hurry. If you are unclear about just one or two items, your entire tax return can become inaccurate. To avoid missed deductions, credits, and other significant errors, it is best to hire a reliable tax professional. If possible, it is best to work with a tax professional who specializes in tax returns for entrepreneurs.
Have you been paying your quarterly taxes?
Throughout this year, have you been paying your taxes quarterly? To help avoid a major tax bill, and to avoid additional penalties, it is essential to pay your taxes each quarter. If you are a new business owner who missed the memo on this one, there are steps you can take to correct the issue. Speak with your tax professional as soon as possible to get an estimate of what you’ll owe, and discuss options for filing the forms needed to get on a payment plan to pay off your tax bill.
Preparation is key to successfully filing your taxes as an entrepreneur
Filing your taxes as an entrepreneur doesn’t have to be stressful. Instead, you can take the steps listed above to get a head start on your 2017 tax return. Having all of your needed documents in order, hiring a trusted tax professional, and knowing what you owe are some of the best ways to be sure that you are ready for the upcoming year. A little bit of advanced planning will keep the start of 2018 free from bad tax surprises.