As the end of the year quickly approaches, it is time to start thinking about how your business will handle taxes. Tax laws are extremely complicated and it is best to work with a professional accounting firm to have them handled appropriately. Most people work all year to ensure that their taxes are easy to file. Even so, there are still some things that you can do to make tax season easier.
Here are some of our best tips for tax planning for businesses as we enter 2020:
Think About Deductions
Tax deductions can help to reduce your business’ tax bill. Knowing what deductions you can take, and having an itemized list of the items that you purchased throughout the year can help your accountant get everything in order quickly. You want to get everything listed, from company trips to ordering new supplies.
Tax deductions can be any number of things that you can subtract from your taxable income, including Interest on mortgages, Medical expenses, other taxes, home usage, loans, charitable contributions, Pension and Retirement annuity contributions and more.
Through the years IC Quantum Accountant has helped scores of clients to develop a system that can work in their environment to save documentation either in hardcopy or soft. Keeping track of your expenses does not have to be a stressful exercise.
Learn What Credits and rebates You May Have
Another thing that could save you money come tax time is learning about the different credits that are offered and which ones you can get. These will help take away from your tax burden. Even better, learning about credits now can help you to meet the requirements for new or different credits for your taxes into the future.
Many tax credits give you proportional reductions on your tax bill – if you get a credit for R2500, you will see your tax bill lowered by R2500. There are many different credits that you can take advantage of – so make sure you look into your options.
There’s rebates on interest earned and others that can be taken into account for better tax planing helping you save more for retirement.
Understand Tax Brackets
There are different tax brackets that individuals and businesses fit into – so make sure you understand what tax bracket you will be in when you file. Trying to figure out how much you owe by using the wrong bracket can give you wildly wrong totals.
A tax professional should be able to help you with this.
Set Up A Place For Your Tax Records
For business owners, one of the most important things you can do is set up a place where you keep all of your relevant tax information, including payroll, receipts, and transactions. These documents are imperative to filing your taxes, so you should know where they are. Try to get digital copies that are kept in a safe place. Most businesses will keep all of their tax records, but you should aim to keep at least 7 years.
Find An Accounting Firm You Trust
Business taxes are a bit more complicated than your traditional taxes. You need to work with an accounting firm that you can trust – both with your information and in their work. It is easy to find an accounting firm that can do the work, but few are personable and help you to grow and change. Taxes are stressful, and you need someone who will make the situation less tense.
Find an accounting firm that has everything that you need and can help you to meet your goals next year. A firm that can handle the size and scope of your needs. If you need to, try a few different options until you can find the one that fits the best.
Talk To An Accounting Firm in Pretoria
Many people don’t realize the importance of talking to an accountant while they are planning for tax season because they think that person will handle everything when the time comes – but that isn’t a good habit to fall into. Instead, you want to talk to an accountant as soon as possible.
It is never too early to start thinking about your taxes, even if you don’t have a great deal of money in your bank account or your business isn’t yet making that much money. Make sure you work with a professional that has your best interests in mind and can work with you to ensure your business stays on the right side of the law.
To get started, schedule an appointment today.