As we are approaching the end of 2022, now is the time to find a San Francisco Tax professional – if you reside in San Francisco.
But – even if you are not in San Francisco but are a small business owner, then the following tax tips are for you.
Read on to learn more!
Mark All Tax Deadlines
The very first tip is to be aware of your tax deadlines. Most of us are on a calendar fiscal year – December 31st will be a very important time, also known as the cut-off period. You need to be aware of this date.
So, if you don’t want to get a big check from a client until the next fiscal year – as you will have a big tax implication – then don’t invoice them until after the end of the year.
Another aspect that you want to pay attention to is the tax forms for your employees and contractors are going to be due. So, you will need to report all your W-2 information and give those to your employees.
It gets reported on W3 – but all of this needs to be reported and filed at least by January 31st. If you get confused about the miscellaneous tax deadlines and filing, you might as well want to hire a tax professional and get things done timely.
Assign Tax Duties
If you are in a situation where you might have a payroll provider or, you might have a CPA or bookkeeper doing your payroll, you need to ask – who is filing the W-2 and who is filing 1099.
As a small business owner, you might have some obligation on some of this – if you are not aware. So, you need to know who has your back and who is filing these things for you. If you are dealing with payroll, then more likely, the payroll deadlines are also going to be on your plate.
So, as a business owner, you ought to ensure that you are doing your part – even if somebody else is doing the filing – you might still have a review portion to do to be able to get all of your taxes done.
Comprehend the Basis of Accounting
This next tip is all about understanding the basis of accounting – from how your financials are being done and how you report on your taxes.
When we refer to the basis of accounting, you might have heard about “cash and accrual.” So, are you doing cash books or accrual books?
Most business owners do cash books – and if you are doing cash books too, you have to ensure that it aligns with how you report your taxes. Once you get to a certain size, you need to start reporting your taxes on an accrual basis.
But – you will have to be clear about whether it is cash or accrual because some tax-saving ideas will not help you. So, talk to a tax professional, a professional bookkeeper, or your CPA, and make sure you understand the basis of accounting, so you are not taking a strategy that isn’t helping you at the end of the day.
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