If you run your own business then you likely know how frustrating, confusing and downright frightening tax time can be. Before it comes time to file those dreaded tax returns, keep these tips in mind to help you to save a bit on your taxes.
1.) Get copies of previous returns. If your tax situation has not changed much then you can use your last year’s return to help you know what paperwork you need to collect. If your circumstances have changed, then be sure that you make a note of those changes.
2.) Review calendars, appointment books and to-do lists from the year. There is a good chance that you have missed a business trip, lunch meeting or other tax deductible tidbit. Keep track of those meetings throughout the year. Any classes or conferences that you attend, business associates or clients that you entertain and stock purchases that you make can all be used to lower the tax you owe. If you mark these things down in a calendar or other notable place, you can review them before tax time to ensure that you have not left out a deduction.
3.) Keep your bank statements and credit card statements in an easy to find place. Gather them together and look through the transactions for deductions that you may have missed. Try to keep all of your tax related papers together throughout the year so that you can get your hands on them quickly at tax time. You want to be sure that your accountant has all needed information at once so that you can get your taxes filed and over with quickly. Getting this information to your accountant before he needs it will ensure that you have lower fees overall which is another great way to save money at tax time.
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This article was written by Nixon Williams Accountants at http://www.nixonwilliams.com/, the UKs leading accounting practice serving freelance contractors, interim managers and consultants. Click here to learn more by visiting our website.
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