Hire a Reliable Accountant
Paying taxes may seem very complicated at first because there can be a lot of things to process. But, do not be overwhelmed because you do not really need to know every nook and cranny of this important activity; just stick with the basics and you and your business will be fine. This article serves as a quick guide to explain the basic things you need to do when paying your US taxes and cites some beneficial software that can be of great help.
Accountants play an important role in every business
– they, in a way, keep your business’s finances and financial statements in order. Unless you yourself are an accountant by profession, you have no choice but to hire one in order to manage your tax payments and all the requirements that come with it. Learning the basics of accounting through the internet or through some books that offer a crash course in accounting is very helpful. However, you cannot put the fate of your entire business on that little accounting knowledge of yours. You really need to have at least one accountant to help you in paying taxes and handling the finances of your business.
When you have hired a competent accountant, paying taxes will be much easier and you can focus more on your business. The next thing you need to do is to track down all the expenses of your business. You need to list down everything from the smallest ones like office supplies to the largest ones like the payroll to get a good overview of how much you are spending and to properly allocate funds.
Keep Your Records
You, with the help of your accountant, should record all the day-to-day transactions that the business conducts to keep track of your money and make sure that it is going where it is supposed to go. Have a record book and record all your daily business transactions. For reference, keep the receipts and invoices in an orderly manner, arranging them according to the date of the transaction.
Just like the receipts and invoices, make sure to also keep your credit card statements and receipts and record them in your book. Keep all these documents for seven years so that when the time for auditing comes, you can present all the necessary documents readily.
Obtain the Necessary Software
Paying taxes requires you to organize all the receipts, invoices, and other important documents of your business. However, this is not an easy job for some individuals who are not naturally organized. If you are one of them, you should not worry because you can certainly use software that can help solve your problems and get you ready to pay your US taxes.
If you need help in organizing your records, files, and documents, you can try Intuit’s QuickBooks which is priced at $120 or less, not a bad investment for a great program. Many people swear by the record-keeping ability of this software and to suit the different needs of its users, it has different options to choose from such as pay roll, sales tax, and others.
If you are on the “low tech” side and is not comfortable with using any kind of advanced software, you can use whatever organizing system you have on your desk; just make sure that you keep them as organized as possible to prevent all the troubles when paying taxes. You can actually use a physical file or a hanging file. These techniques can be very time-consuming but if it works for you, then stick to it. As long as you are able to record and organize everything and are comfortable with what you are doing, you and your business should be fine. You might just need the help of at least two accountants, if your business is quite big.
Paying taxes should not be a very difficult task. You just need to have an accountant to manage your business’s tax payments and other financial activities. However, be careful not to be too dependent on your accountant. They are just there to assist you; they should not run your business. Next, track down all the expenses of your business and record them. Make sure you have all the necessary receipts and documents to make US tax payments a breeze.
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What tax to pay
What tax to pay