3 Things Small Business Owners Should Know About Federal Income Taxes

Taxes can be one of the most challenging parts of the accounting process for small businesses.

That’s why Remote Quality Bookkeeping™ is proud to partner with many of these companies, using our online accounting services to make tax time easy instead of stressful.

When you hire us to provide online accounting services, we organize, process, and reconcile all of your financial information throughout the year. When tax time arrives, all of your income and expense information is accurate and available in one easily-accessible place

Whether you use our online accounting services or choose to go it alone, here are three very important things to know about filing federal taxes as a small business.

Your Entity Designation Affects Your Tax Burden

Sole proprietorship? S Corporation? Partnership? LLC? INC? The legal way you choose to describe your business might not feel like a big decision at first, but it has a significant impact come tax time. There are advantages and disadvantages to each, and it’s important that you do your research to determine what legal entity best suits your needs.

Missing Deductions Can Cost You

As we outlined in a previous blog post about commonly missed tax deductions, there are a number of expenses that small business owners are eligible to deduct from their income before filing. However, successful deductions depend on two things: properly tracking and categorizing your business expenses. Doing this on your own can be difficult, which is why our online accounting services come in so handy.

You Can’t Wait Until April 15th To Pay

When you’re an employee of a traditional company, taxes only have to be filed once a year. When you’re a small business owner it doesn’t work exactly the same way. Although you file just once a year, you have to make payments toward your anticipated tax bill several times throughout the year. This is what’s known as “Estimated Payments.” Failure to make these payments means you’ll have to pay a penalty when it comes time to file.

Are you feeling a little hesitant about handling all of these responsibilities on your own? Worried that your lack of bookkeeping and accounting skills might cost you in the long run? That’s where RQB comes in!

We hire the best small business accountants and bookkeepers in the business. With their expertise on your side, you can approach your taxes with confidence instead of dread!

Contact us for a free demonstration about how our online accounting services can make filing your federal taxes much easier.