Tips for Small Business Tax Preparation

A fact that most people may not know is that businesses pay federal taxes on net income four times a year (as long as they are profitable). 

Here are a few tips on how small business owners can better prepare themselves and make sure that you check all of the boxes off your tax checklist. 

Let’s start with the first tip: important tax dates for small businesses. The federal government requires businesses to pay federal taxes on net income on a quarterly schedule. For 2020, the quarterly payments are due on: 

First Quarter Tax Estimate Deadline April 15, 2020

Second Quarter Tax Estimate Deadline June 15, 2020

Third Quarter Tax Estimate Deadline September 15, 2020

Fourth Quarter Tax Estimate Deadline (Corporations) December 15, 2020

Fourth Quarter Tax Estimate Deadline (Individuals) January 15, 2021

The second tip I would give to small businesses is to make sure that they have a business account set up separate from their personal accounts. If you do not have a business account open yet, then stop reading this and go open one now. I will wait for you to come back before I continue.

The third and final tip, when you open your business account, make sure to not charge any personal expenses to the business account and vice versa. Many small business owners charge personal expenses like groceries to their business accounts or buy a printer for their business on their personal accounts. 

I am here to help you and your business with all of your bookkeeping needs. Contact me today to learn how I can be of assistance.