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Tax season is over, but that only means that the next tax season has begun.

Take the time to make a general assessment of your business and make sure you’re aligned with your short-term and long-term goals. With the new tax season starting, now is the time to form new habits that will make the next tax season less stressful. Follow these tips to make your business’s tax time for the coming year easier.

 

Keep Every Receipt

It’s that simple; keep all of your receipts. Receipts can add up to a lot of deductions, including deductions for eligible equipment under Code Section 179.

This also includes keeping a  log of everything, including your small business’s cash transactions, as that is another easy and often overlooked deduction. If you lease your business’s building, you may be able to deduct the lease payment as well.

Separate Personal and Business Finances

It’s a common mistake for small business owners to mix their personal and business funds. Keep a separate business checking account and credit card – this will make managing your books and getting your deductions organized much easier come tax time. Additionally, set up a filing system and keep all your paperwork in one place, and tax time will be even easier.

Donate Shares Rather Than Cash

Many small businesses already make charitable donations throughout the year, deducting the amounts donated. By donating appreciable stock shares, may save your business on taxes without taking away from the charity. Your business can deduct the stock’s worth at the time of donation, rather than deducting how much you purchased it for.

Evaluate Your Employee Benefits

It’s a good idea to evaluate the health, dental and other benefits that your employees are receiving. Understanding your benefits plan’s financial impact on your business as well as how it pertains to your employee health can serve you well in the long run. Make sure your benefits package is both cost-effective and reliable. 

Offer your employees additional benefits by joining First Commonwealth's Work First program and becoming an Employer Partner. Work First is a NO COST employee benefits program that delivers banking convenience, preferred pricing, financial education, and all the advantages of a credit union into the workplace.

Ready to become an Employee Partner? To get started, fill out this form

Need Additional Business Guidance?

Let First Commonwealth help you make the right decisions. Contact us today to learn more. Phone (610) 997-6381 or email us at business@firstcomcu.org.