7 Tax Planning Tips Every Business Owner Should Know by Tamecia Shaheed

 

Tamecia Shaheed is a Georgia native and graduate of Clark Atlanta University. She gained her experience in tax preparation and financial services by starting out working as a seasonal preparer for one of the nation’s leading tax companies. With a marketing background and having acquired enhanced business acumen working for a small business, Tamecia started her own practice in 2011. Now having 10+ years of experience as a Tax Advisor, she is a firm believer in financial education and helping her clients save money. Tamecia ensures she and her staff receive annual training and certification through the Internal Revenue Service (IRS) to stay up-to-date on the latest changes to the tax code. She is a proud member of The BOSS Network, Southern Crescent Women in Business (SCWIB), National Society of Tax Professionals (NSTP), and the Better Business Bureau (BBB) in Georgia. Tamecia specializes in tax planning and filing for individuals and businesses. She founded Harvest Time Tax Services, LLC in 2014 and rebranded the company to DBA Harvest Time Tax + Financial Services in 2016. Tamecia currently serves as the Principal Tax Advisor at the firm.

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As a business owner, you have a lot on your plate. But don't forget to put tax planning at the top of your list! Here are seven tips that will help you stay ahead of the game and save money come tax time.

1. Make sure you're taking all of the deductions you're entitled to.

If you're self-employed, there are a few things you can deduct on your taxes that others can’t. Things like home office deductions, vehicle mileage, and meals and travel expenses. Additionally, you may be able to take advantage of personal tax breaks for education, child care, and retirement savings too. By claiming all of the deductions and credits you're entitled to, you could save yourself a significant amount of money come tax season.

2. Keep good records throughout the year.

Good tax records are important. Keep track of your income and expenses throughout the year to make sure you're prepared come tax time. This will make filing your return much easier and could possibly save you from an audit.

3. Invest in a good accounting software program.

Using online accounting software makes it easy to keep records throughout the year. Accounting software like QuickBooks Online is reasonably priced and a great way to stay organized and on top of your business numbers. The investment is also a business write-off you can deduct from your taxes.

4. Estimate how much tax you'll owe and submit quarterly payments to the IRS.

Quarterly estimated tax payments are most typical for the self-employed, and they are due four times each year. To get an estimate of how much tax you'll owe, you’ll need to divide your tax liability for the previous year by four, and the net result will be your estimated payments for each quarter. This is typically done automatically by either a professional tax preparer or a tax preparation software plan. Making quarterly payments helps to avoid any penalties or interest down the road.

5. Don't wait until the last minute to file your taxes.

Give yourself plenty of time to get everything done correctly. Make sure you know the applicable filing deadlines and get a head start to avoid making mistakes. Trust us, it's not worth it to procrastinate on this task.

6. Plan for changes in your business.

Whether that means needing to hire more employees or expanding into new markets. No one knows what the future holds, so it's important to always be prepared for change. As your business grows and changes, good tax planning can help ease the burden and ensure that you're not paying more than you have to.

7. Hire a tax professional if you need help.

Every individual and business should take care to minimize their tax liability through effective planning. If you need help navigating your taxes, our team of experts can help. We have years of experience and are up-to-date on the latest changes to the tax code. Contact us today at harvesttimetax.com to get started!

Learn more about Tamecia at harvesttimetax.com

Twitter: @harvesttimetax