Bookkeeping and filing taxes can be tedious tasks for any business owner but it’s of great importance that you want to focus on as April 18th, the tax deadline, approaches. Today on The Atlanta Small Business Show, Bree Manay, CEO and Managing Partner of Manay CPA, discusses a few things you need to know as the height of tax season approaches.
As 2022 comes to a close, Manay suggests first projecting the financial results of your company’s year, beginning to create a budget with the help of your team, and becoming organized, then considering any new changes or documents you came across throughout the year. These documents include but are not limited to W2, 1099, payroll, payroll accounting, etc.
Even though we are still conscious of the difficulties encountered in 2019–2021, there have been positive outcomes from those trying times. For instance, we will still be able to deduct 100% of any business-related expenses till the end of 2022. Everything linked to business profit, such as business dinners, bonus requirements, homeowner expenses, travel, computers, phones, and fax machines, may be written off on your taxes. The constraint is that those costs must be covered by January 1st, 2023.
You have until April 18th to contact the IRS about any payment options when filing. There is always the option of an installment plan, which depends on the circumstances and the amount. Manay advises that business owners should aim for quarterly planning sessions with their tax advisors. This is to outline your estimated taxes and to plan out your bigger picture. Using this tool will help you get ready to pay the IRS the required 90% repayment before the deadline.
She adds that it is crucial to fill out an entity on your individual tax returns for any small business or one-person LLC because these taxes will be paid at the personal level rather than the business level. Manay points out that everything must be documented to avoid the possibility of being penalized for wrongly filling.
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