6 Tax Tips Your Company Needs To Know Before Filing In 2014

Tricia Borren

January 28, 2014

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When paying taxes, many small business owners overpay as they do not know how to cut their burden. This is a shame as there are plenty of legal and easy ways to save cash. In fact, here are six tips your company needs to know before filing in 2014.

Go through records

Now, a small business owner should have impeccable records. This means that he or she should keep a receipt for every transaction. Ideally, in January or February, a business owner should start rooting through this as it will allow him or her to save money in the future.

Utilize the Internet

With ADP.com one can use ADP tax services. This is, without a doubt, a great way to avoid missing out on any deductions. Since most people make mistakes, it is easy for a company to save money when the accountant uses ADP to track everything and keeps things in order. Remember, with technology, it is hard to miss deductions or money-saving ideas.

Affordable care act

With the new health care laws, one should save some money. Of course, it is not so simple, and one must go out of their way to research everything. Luckily, when doing so, most entrepreneurs have cut their tax burden drastically and saved some serious cash in the process.

Avoid audit traps

When classifying employees as independent contractors or overusing the home office deduction, one can end up seeing their books audited by the IRS. This is a serious issue one must avoid as an audit will cost a company a lot of time and money. In fact, ideally, one should never suffer through this as an audit is a time-consuming and costly proposition.

Expenses separate

It is often hard for an entrepreneur to keep his or her expenses separate. This is a mistake though as it is beneficial to separate all transactions. Otherwise, one will have a lot of work to do when they need to file their taxes.

Start early

When filing taxes, one should start the process early. Otherwise, it is easy to procrastinate and avoid filing. Fortunately, when starting early, one can avoid common mistakes and can encounter the best deductions and money-saving ideas. Simply put, it is easy to procrastinate, and one must not do this as they can end up in serious trouble.

When running a business, it is wise to keep tabs on everything tax-related. When doing so and having smart approach, one can avoid most issues.