Options for Filing and Reporting Small Business Taxes

Large and small businesses all around the United States are required to file and pay taxes. Small business taxes are applied and determined differently than those of larger corporations. To accurately report and pay taxes business owners are encouraged to follow these helpful preparation tips.

Small business owners have the option of filing their own tax returns or they can hire the help of a professional. Professional tax help can come from a certified public accountant (CPA) or professional tax preparer. Each individual is likely to accurately prepare a small business tax return; however, many business owners prefer working with a certified public accountant (CPA). In addition to a filing a federal or state small business tax return, a certified public accountant is experienced in keeping all financial records in order. Having all financial records in order may allow business owners to claim additional tax deductions or tax credits.

It is possible for a small business owner to prepare their own returns; however, the process is often long and sometimes difficult. To make the process easy many people take a tax course or they purchase a tax software program. The majority of tax courses offer valuable information and helpful tips to those who may have to pay taxes. These courses are usually available at a local college or an establish tax preparation business for a small fee.

Since owning and operating a business is a large project there are many business people who are unable to find the time to take a tax preparation course. These people are likely to purchase a tax software program. Tax software programs can be purchased from a traditional retail store or they can be paid for and downloaded off of the internet. The majority of individuals using a tax software program to determine if they owe any money are required to use the premium software versions because they are usually the only tax software versions that supply the forms needed.

When preparing their own taxes entrepreneurs are urged to keep in mind all of the tax deductions that they qualify for. There are many business owners who do not realize that they could qualify for multiple tax deductions. The majority of office supplies and other equipment that is required to operate a business is tax deductible. It is also possible for the owner of the business to donate some of their old office equipment or supplies to a charity. These donations are considered charitable deductions. Many small business owners make the mistake of just tossing out their old equipment because they do not realize that they can receive deductions for donating old equipment as well as purchasing new equipment. Taking a tax preparation course, using a software program, or hiring the services of a professional are great ways for them to learn about the deductions that they may qualify for.

Many business owners decided to start preparing their own taxes only to later learn that figuring out small business taxes is more difficult than they anticipated. Those who are unable to complete their small business tax returns or feel that they made a mistake on the tax forms can take their partially completed tax forms to a professional tax preparer for assistance and further completion.

Best Resources for Small Businesses

Being a successful small business is not easy. The five core challenges most small business face are time management, pricing, cash flow, managing growth and marketing / client acquisition. In order to succeed, you must arm yourself against these challenges. The good news is that there are a number of fabulous resources to help you with these issues.

Actively seek out the right small business information.
Many small business owners are so over-extended that they neglect staying informed about business trends. This is a fatal error. In today’s modern marketplace, you simply cannot succeed if you run your business on intuition alone. You may stay afloat in the short run, but you will eventually lose out to better informed competitors.

There are a number of incredible online resources that are both free and invaluable. Sites like Inc.com and Entrepreneur.com provide tips on just about everything from starting your business to navigating advanced legal issues. They feature in depth information on running your business, leadership / management techniques, sales & marketing tips, small business technology and finances.

Helpful Tip: Set aside at least 1 hour each week to review these sites. If you find that you prefer to read in bed, consider subscribing to a few of these magazines. This information will make you and your business stronger.

Know your industry and target market in real time.
In our modern age, trends shift at break-neck speed. It is important to stay abreast of developments in both your industry and your target market’s microcosm. After all, more often than not, what concerned your target market 3 months ago is now ancient history.

Subscribe to industry related publications and consume the same media as your target market. If you sell jewelry for eco-friendly women in their thirties and forties, spend an hour each week reading news and publications that are relevant to that market. Likewise, be sure to check industry news every week. For example, using the same eco-friendly jewelry analogy, you might read up on green product developments, new fashion trends or even ecological political issues.

Helpful Tip: Set two separate Google Alerts – one on your industry and one for your target market – to send you period updates on relevant news. Google will send these news stories to you automatically, making it easy to skim over the headlines and read through the meaningful stories.

Find the right on-line partnerships.
The proliferation of online office supply stores makes economically and efficiently stocking your office a lot easier than it was 10 years ago. Buying office supplies online takes less time and makes price comparison easy. Because of online competition, online suppliers are eager to earn your business. The good ones will provide a wealth of free information on their site and happily take your calls to field questions and offer advice. For example, if you are looking for discounted printer ink cartridges but are a little confused about toner versus regular stores like compandsave not only provide free yet invaluable printer cartridge information resource center but they also eagerly accept calls and offer advice on how to save on office supplies.

Helpful Tip: When you find a supplier with great prices and customer service, hold onto them for the long-haul. A good supplier relationship can save you thousands, streamline your operations and free up your time so you can focus on growing your business.

Taking Advantage of the Trends of 2012 in Your Small Business

Well, as a former businessperson in retirement I am often contacted by a small business startups and asked questions about how best to do business in such a dismal economy. In fact generally the questions are accompanied by excuses and complaints. Indeed, just as the economy presents challenges, hardships, and crisis for small businesses, I would submit to you on a reciprocal side it also unveils excellent opportunities at every turn. Indeed I’d like to talk to you about this for a moment if I might.

Is it possible to take advantage of the economic downturn and slow growth economic trends? Is it possible to take advantage of other cost-saving strategies to improve efficient marketing in 2012? Yes it is, and let’s go ahead and talk about this for a moment

Slow Growth Economy

A slow growth economy means your competition is not expanding as fast as it normally would. It also means if you’re starting a new business you’re going against businesses that are well-established, but ones which are also experiencing challenges with cash flow and have been beaten down. If you come into the market hot and heavy, they may not be able to compete, they don’t have anything left in them.

Consumers – Low Cost High Volume Strategies

Gaining market share very rapidly in a downturn economy is pretty easy if you use a low-cost high-volume strategy to gain market share. This also creates an abundance of referrals, and a very large customer base extension to perhaps market segments you would normally not have.

Inexpensive and Over Qualified Labor

Downturns in the economy also mean that fewer people are employed, and that means some top-notch people who are over qualified will be willing to work for you at half the salary. This means you can put together a significant team of experienced employees. When the economy is cooking along very nicely, you will be able to do this.

Deals on Supplies, Inventory, Vendor Assistance

When times are tough and other small businesses are hurting, that means your vendors, suppliers, and those who sell your inventory to you are willing to make deals, give you better terms, and offer you assistance. That’s free for the taking, and it will lower your costs, allowing you to pass those lower costs onto consumers to grow your business.

Low Cost Loans

Right now interest rates are at an all-time low, and if you can qualified to get a business loan, the amount in which you’ll have to pay back later in interest is quite reduced. If you can get the loan, this becomes an advantage to your business. Your competition may not be able to get the loans because they cannot prove their cash flow is adequate enough considering the hardship they’ve had going through during the last recession.

Deals on Business Location Leases

Lastly, right now some retail centers have extra unoccupied space, and they are willing to do deals to fill out the spaces, improve their own revenue, and allow them to keep those business buildings from being foreclosed on. This gives you the advantage in negotiating a good deal on a lease with excellent more favorable terms well below what your entrenched competitors are already paying.

Therefore I ask that you stop complaining, and start using your mind and thinking about how to take advantage of the current economic crisis. Please consider all this and think on it.