Being an entrepreneur comes with tax benefits. While small business owners can and should use a tax professional to guide them through the tax filing process, it’s up to the owner to track finances and file receipts that offer proof of eligible deductions.
Create a filing system to store and organize business receipts. Create folders that group receipts by deduction categories such as equipment and supplies, marketing, travel, entertainment and auto.
Hire an accountant or use accounting software to manage expenses, income, accounts receivable, loan details and other financial information.
Save a percentage of your business income each month for tax purposes, and pay quarterly estimated taxes, as businesses are required to pay estimated taxes in June, September, January and April, as well as filing a tax return in April. Download tax forms from the IRS website to calculate and pay your estimated taxes.
File your business tax return, using receipts, accounting reports and estimated tax payment. Consider hiring an accountant to make sure your return is accurate and help maximize your deductions. Tax services are tax deductible, so it’s worth the investment.