{"id":12951,"date":"2018-02-05T08:00:05","date_gmt":"2018-02-05T15:00:05","guid":{"rendered":"https:\/\/honeybook.site.strattic.io\/?p=12951"},"modified":"2022-08-19T13:14:22","modified_gmt":"2022-08-19T20:14:22","slug":"5-small-business-tax-tips","status":"publish","type":"post","link":"https:\/\/hbb.dev.reliablepenguin.com\/blog\/5-small-business-tax-tips","title":{"rendered":"5 Tips to Make Tax Time a Breeze"},"content":{"rendered":"
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Follow these 5 tax time tips to better-understand deductions, tax credits, and staying organized.\u00a0<\/em><\/p>\r\n\r\n

\"Squarespace<\/figure>\r\n\r\n\r\nI have a confession: when I was in my first year of business, I was not as financially organized as I should have been. I am a Certified Public Accountant. I should have had it all together. But I was so focused on getting my business up and running that several financial-related items were pushed to the side. This made for a horrific tax season as I tried to get everything together.<\/span> Many of you may have experienced something similar, but don\u2019t beat yourself up. It\u2019s easy to get laser-focused on marketing and other tasks to grow your business\u2014after all, you need to make money, right? However, following these simple small business tax time tips will set you up for success come the April deadline.<\/span>\r\n\r\n\r\n

1. Gather your forms and numbers as early as possible<\/h2>\r\n\r\n\r\nAs a small business owner, you\u2019ll need various numbers and forms to properly file your taxes. Of course, you\u2019ll need the basics like your social security number, employer identification numbers, your income, and any expenses you can deduct. If you\u2019ve received any 1099-MISC forms, you\u2019ll also need those to report additional income. On the other side, you\u2019ll need to report income you\u2019ve paid to any vendors or contractors using a form 1099.\r\n\r\n\r\n\r\nForm 1099 is a required tax form that reports payments you make to vendors to the IRS. The basic guideline is that if you paid a vendor more than $600, you will need to issue them a form 1099 at the end of the year.\r\n\r\n\r\n\r\nHowever, there are a few more rules, so check with an accountant if you are unsure whether you owe a vendor a 1099.\r\n\r\n\r\n\r\nTo save yourself some trouble at the end of the year, collect a Form W-9 from any vendors you work with that you think you might pay at least $600 to. That way, when you prepare the 1099 at the end of the year, you have all the information you need.\r\n\r\n\r\n
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Download our free small business tax filing checklist!<\/h2>\r\n

Take the guesswork out of tax season with our step-by-step checklist of which numbers and forms you need to prepare.<\/p>\r\n\r\nGet The Checklist<\/a><\/div>\r\n<\/div>\r\n\r\n

2. Understand the tax credits you’re eligible for<\/h2>\r\n\r\n\r\nMost business owners know they need to carefully track expenses to list all of their tax deductions for the year. Yet, some of the best tax advice is to also spend enough time searching for the tax credits you\u2019re eligible for.\r\n\r\n\r\n\r\nRather than deducting from your taxable income (what tax deductions do) tax credits actually give you money back on your tax bill. So, if you were to owe $10,000 after your tax filing, you could reduce your tax bill to $5,000 if you have $5,000 in tax credits. Tax credits can lower your tax burden and even give you a bigger tax refund if applicable.\r\n\r\n\r\n\r\nYou can view a full list of business tax credits<\/a> through the IRS. Some more common credits include the following:\r\n\r\n\r\n