Top Tax Tips For Busy Business Owners

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Chispa MagazineAsk any business owner what their favorite part of running a business is, and not one will say taxes. In fact, not one single self-employed person on Earth enjoys doing their taxes, and there’s a reason for that. It’s incredibly complex and can get quite frustrating, but don’t let it get that way. So… for those business owners who are starting to pull their hair out, here are our top tax tips to make it simpler!

Tip 1: Set aside more tax money than you think you’ll need
It’s just a good practice to get into, really. This way, you avoid any surprises come tax deadline day, and your company will be better off for it.

There are several benefits of doing this. One is that if you put away more tax than you need, you’ll receive a nice lump sum at the end of the year. You can then use this on equipment, software or anything that you see fit.

And furthermore, you will be able to make the tax process a lot more swift. You won’t be scrambling to find that extra bit of cash needed to make ends meet, and it’ll be a breeze.

Tip 2: Familiarize yourself with tax law
Because it’s constantly evolving, changing and shifting. It’s rather complex, too, and there’s bound to be a lot you didn’t know.

For example, did you know you could be issued with a Director Penalty Notice at any point, which makes you responsible for your company’s tax debt? Do you know by which dates you must fill in your tax returns? 

Do you know how to register for VAT? Did you know you may have to pay taxes in your home country even if you don’t live there? Make sure you keep on top of things.

Tip 3: Don’t forget those initial expenses
You can deduct all kinds of things from your tax return, like company car costs, but these are ongoing. Every single week you’ll have a couple of different expenses, and keeping track of these can be a pain.

But forget about these, for now. When the time comes for your first tax return, do not forget the initial costs of setting up your business! This includes buying any equipment, software or furniture. Additionally, mark down initial costs like registering your business’s name and web domain.

Tip 4: Utilize software packages
Taxes are a pain, but you aren’t alone when managing them. If you can’t afford an accountant or simply don’t want one, you can gain all these benefits yourself.

Online software packages like FreeAgent can be used for tax purposes, to both organize and track. These tools can be simple to integrate with other business software packages so you can control every aspect of your company from one area.

Overall  
As we mentioned at the start of the post, nobody likes to be stuck managing taxes. But, if you follow these tips, you can make it a whole lot easier for yourself. Wave goodbye to a painful tax period.

Photo by Sergey Nivens | Shutterstock

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Milo Senalle

Milo Senalle

Managing Editor at Chispa Magazine
As one of the managing editors of Chispa Magazine, Milo Senalle is the go-to man for all things technology, ethical, and financial concerns. Providing laughs with his style of writing and problem-solving techniques, Milo is a voice of reason among the girly staff at Chispa. Married with children, living in Atlanta, he works 24/7 on becoming a man of courage and believes honor begins at home.

Milo Senalle

As one of the managing editors of Chispa Magazine, Milo Senalle is the go-to man for all things technology, ethical, and financial concerns. Providing laughs with his style of writing and problem-solving techniques, Milo is a voice of reason among the girly staff at Chispa. Married with children, living in Atlanta, he works 24/7 on becoming a man of courage and believes honor begins at home.