French L. Taylor shares how small businesses can manage their taxes
1. Hire the Right Accountant
French L. Taylor says that solo proprietors hire accounts to help them with tax filing and payments according to the IRS standards. He adds that accountants play a critical role, including lessening business owners’ time to prepare taxes and income statements.
Business owners can have more time to focus on other core management activities when they outsource accounting. French Taylor says that accountants offer a wide range of services, such as:
- Asset depreciation
- Estimated tax payments
- Income statements, etc.
In addition, accountants ensure that your small business is successful over the long term. For example, well-prepared income statements are crucial for borrowing loans from banks.
Small businesses must see accountants as part and parcel of the company team. As a result, when businesses hire accountants, they should look for an expert in dealing with small businesses. Businesses that have worked with accountants can advise other businesses looking to outsource accounting, advises French Taylor.
2. Determine Your Tax Obligation
According to French L. Taylor, before an accountant prepares your tax payments, they need to know your business’s tax liability. Tax liability determines the filing and payment of your taxes. French Taylor adds that several issues affect a business’s tax liability, including:
- Number of employees
- Business structure
French Larry Taylor explains that a business’s structure influences the federal income tax type that it needs to file. Also, businesses may find different types of tax that they need to file in different states and local governments.
Business assets, such as property, equipment, inventory, etc., also determine a business’s tax liability. Furthermore, businesses must file employment-related taxes if they’ve got employees. French Taylor also says that self-employed company owners should file self-employment taxes.
3. Plan Ahead to Avoid Costly Blunders
French Taylor cautions that small businesses should be clear about their needs before they hire a professional accountant. It’ll prevent them from making costly mistakes. He advises that businesses should calendar all the dates to pay estimated tax payments.
Another critical thing is to have correct records to help with filing tax returns. Since the business environment isn’t always the same, unexpected things occur. Because of this, businesses need to have a fund to cater to emergencies or changes in the market.
French Larry Taylor, a federal tax expert, holds a Master’s in Taxation from the University of North Texas and a Bachelor’s in Business and Public Relations from Austin College. He’s a specialist in Federal tax law, specifically Section 199 deduction and tax accounting methods.