Filing of tax returns is essentialread more here for your business as it keeps you in check with the authorities. You do not want the authorities to be chasing you because you have not done your due diligence.
As a business with a permit, ensure that your taxes are paid on time for successful operations.
Any business tax mistake that might occur when filing your tax returns should be rectified as quickly as possible. One of the imminent mistakes is the late filing of returns which will attract penalties. Click here for more info about business tax errors.
It is common to make business tax mistakesclick for more that’s why you should be very careful. In this article are some of the things you should do to avoidmore the common business tax mistakes.
The first thing you should do is check the deadline for filing the returns. As a business person, it is hard to always find time to check certain matters about your business because of your tight schedule.
It is essential to organize yourself and keep in mind the deadline for filing returns just as you have the date for paying your contractors. Read more now about filing taxes.
A business is normally penalized for late filing of returns which is an unnecessary expense. Your secretary can help you keep these records to avoid the late filing of returns.
Another common business tax mistake you should avoid is misclassification of your employees. Always make sure that when you hire a contractor, you classify them accordingly.
Also, whether it is a contractor or an employee, depends on how much control you have over them.
An employer always has control over their employees so make sure that you classify your employees and independent contractors separately. The payments should also be classified separately on the business’ tax return form.
It is also advisable that you avoid mixing your personal and businesses expenses. If you don’t differentiate your expenses, you are likely to be penalized by the authorities.
Because it is a quick way to pay for expenses, many people end up paying for all their personal and business expenses using the same credit card. Mixing of the business and personal expense is likely to attract a penalty on your business.
You should, therefore, keep every expense separateread more now to avoid an audit from the tax authorities.
You should have a separate business account from your personal account to make it easier when filing the returnsmore. It would be best to keep records of all your expenses, especially when you choose to use a similar account for all your expenses.