As the fiscal year comes to an end, many business owners are starting to prep for tax time. Though it is the season to keep business taxes on your mind, you could benefit from reviewing your tax documents throughout the year. Â These simple tax reviews can be implemented at any time to keep you prepared for the next deadline:
Make sure that employment practices and ownership records are compliant with all guidelines and are up to date. Regulations for the IRS, Department of Labor, and the Affordable Care Act can change quickly, so a periodic compliance review can help you avoid penalties or fees.
Take a look at projected payroll taxes to make sure that your totals are accurate and that you will have sufficient funds to make payments. If your company struggles with paying payroll taxes, you may be eligible for an installment agreement offered by the IRS.
Review any confidentiality agreements or non-competes you may have in place. Keep these records up to date and discuss them with your attorney to ensure that they are compliant with current law.
Consider your succession plan; if it is out of date, revise it immediately. Succession plans that name an employee who is no longer with the company can mean serious trouble ahead if an unexpected event leaves you unable to attend to the needs of your business. A succession plan can also mean you are eligible for tax benefits, so be sure to consult your accountant as well as your attorney to make sure you are taking advantage of available opportunities.
By conducting consistent, strategic tax planning, and periodic tax reviews, your business will benefit from your diligence and your financial outlook will improve, as well as avoiding nasty surprises at tax time. Keeping good records and staying organized means that when you file your taxes, it will be easier, faster, and reduce the chances of filing an incomplete return or an audit. Express Capital Financing can help your business establish a tax review protocol. For more information, call or email Express Capital Financing today.