Small business owners have to plan plenty of things on their plate, from hiring the right employee to looking into operations in their business. It becomes easier for them to manage their accounts and prepare for the taxes at the last minute with proper planning. It becomes essential to be ready all year round to avoid any last-minute pressure for taxes.
If you are also a small business owner filing your taxes for the first time, then you need to understand some essential checklists that will help you plan your taxes. So, in this article, we will appreciate some of the crucial tax preparation checklists for small business owners in Southfield. You can also consult an expert accountant for business tax preparation in Southfield, MI, who can help you deal with the taxes with their experienced knowledge.
What are Business Tax Preparation Checklists?
- Know the types of business taxes: You must be aware of the types of business taxes available for small businesses. There are five types of taxes, such as income tax, that are to be paid on the profits of the company made; then, there is an estimated tax, which is a requirement of quarterly tax payments. In addition to this, there is an excise tax for certain goods and services, as well as self-employment tax and employment tax. You can consult an expert accountant to learn which tax is applicable to your case and how to proceed with it.
- Know about the business tax forms you need to file: There are various tax forms that taxpayers have to file. There is no one-size-fits-all in this tax form filling. As per the business structure, there are specific forms, and you should be aware of the type of form applicable in your case. Schedule C, Schedule K-1, 1099-MISC, and other such forms require you to know or consult an expert accountant to understand them.
- Create a tax-filing calendar: You must curate a tax-filing calendar with stipulated deadlines so that you make all payments. This is also an essential task because it ensures that you are paying the taxes on time and avoiding the penalties for late payment.
- Gather the required business tax return documents: You must gather all the relevant documents about the tax return. There must be ledgers, accounting journals, bank deposit slips, invoices paid and received, and other such documents. Apart from this, there are also other documents for business and employment-related expenses, so you must have all the relevant documents while filing the taxes.