person using a calculator

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

This is a good time to take a general assessment of your business and make sure you’re aligned with your short-term and long-term goals. This is also a great time to start new habits that will make next tax season less stressful. Follow these tips to make your business’s tax time for the coming year easier.

1. Keep Every Receipt

It’s that simple; keep all of your receipts. They can add up to a lot of deductions, including deductions for eligible equipment under Code Section 179. There’s no better time to start the habit of collecting receipts than at the beginning of the tax year. Keep 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.

2. Keep Business and Personal Finances Separate

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.

3. Donate Shares Rather Than Cash

Many small businesses already make charitable donations throughout the year and deduct the amount that’s donated, but donating appreciable stock shares may save you 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.

4. Evaluate Your Employee Benefits

It’s a good idea to evaluate the health, dental and other benefits that your employees are getting. 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.

Tax season is stressful, but it doesn’t have to be. Stay organized, know what you can deduct and evaluate the different parts of your company. There’s no time like the present to start good habits to make the next tax season much easier.

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.

Register for the Small Business Series

Our small business series will cover a variety of topics important to small business owners, including business plans, legal issues and accounting, marketing, social media and more. Learn about the latest business strategies, and get answers to your questions from expert speakers. Upcoming sessions include:

Taxes and Legal Issues for Your Small Business

Tuesday, July 10, 2018
Bethlehem Financial Center

Tuesday, July 24, 2018
Northwood Financial Center

Intellectual Property for Your Small Business

Tuesday, August 14, 2018
Bethlehem Financial Center

Tuesday, August 28, 2018
Northwood Financial Center

Starting Your Non-Profi t

Tuesday, September 11, 2018
Bethlehem Financial Center

Tuesday, September 25, 2018
Northwood Financial Center

Seating is limited. Register now at www.firstcomcu.org/sbs