How to Prepare for 2022 Taxes NOW

In the day-to-day operations of running your small business, the last thing on your mind is filing taxes for that year. Making sound financial decisions on behalf of your business is often difficult enough without the added complexity that comes with tax preparation and filing. While it’s easy to get caught up in everyday life and rush to file taxes on time, here are a few ways to prepare for 2022 taxes now so you don’t have to do as much later.

 

Automate Taxes

Not the taxes you report to the IRS, but the taxes on in-store sales. It’s often difficult to stay on top of sales taxes since the rates for each state and their reporting requirements greatly vary within the United States. If you don’t track how much tax you have to pay, you may wind up accidentally spending it, which will cause unneeded stress and financial juggling. Some programs automatically set the taxes aside and then pay them when they’re due.

 

Calculate Your Projected Payroll Taxes

You also need to keep track of your payroll taxes throughout the year if you’re a small business with more than just yourself to pay. If your small business needs a little more breathing room when paying payroll taxes, the IRS has an installment plan.

 

Donate To Charity

Donating a portion of your business income to charity helps reduce taxable income, but ensure that you keep track of documentation and receipts that help prove how much you donated and are deducting.

 

Itemize Business Expenses

Keeping everything organized as you go, such as detailing, categorizing, and itemizing your business expenses makes for less stress and a lighter workload as tax season approaches. Working with an accounting team outside your business can help you find benefits that you otherwise wouldn’t know about or catch on your own.

 

Organize Receipts

Speaking of receipts, it’s essential to keep track of all your receipts; not just the receipts regarding donating to charity. Not only is it necessary to keep track of receipts so you can track how much you spend during a given period, but you’ll want to have the receipts you need in case the IRS audits your accounting.

 

Organize Tax Paperwork

No matter what you’re doing, it’s always important to use your time wisely, as it stops for nobody. It’s important to get a head start to avoid the stress and chaos that comes with trying to do everything at the last minute. Organizing as you go allows you to send out essential tax documents when they’re due and frees up more time to spend on running your business, or to take that personal day you really need.

 

Hire A Professional

American tax law is incredibly complex, and it’s often not worth the headache of dealing with it for those who don’t have the training or experience. Hiring an outside professional to take care of your tax preparation and planning makes it much easier to take care of your taxes. That’s where Taurus CPA Solutions can help with our tax preparation and planning services.

 

You don’t have to deal with small business taxes alone. At Taurus CPA Solutions, we have custom-tailored tax solutions for you and professional tax guidance with your best interest in mind. Reach out to us today if you have any questions or to contact one of our experts about your tax needs.