When you own a business, you are constantly trying to juggle multiple responsibilities at once. Many business owners are looking for ways that they can cut costs and increase their profit. This may lead to decisions with a small impact like taking care of the cleaning of your building to larger decisions that may include handling your own taxes rather than relying on an accounting firm to do it for you. Mark Dicus & Company is here to talk about a few common business tax mistakes to help you avoid them if you are trying to do your own taxes.
Penalty for Not Paying Estimated Taxes
If you expect to owe more than $1,000 in taxes when you file, you should be making estimated tax payments. When you fail to make these payments or don’t make enough in these payments, you may find that you incur a penalty. This is one of those larger decisions that you shouldn’t try and save money on. You are far better off entrusting an accounting firm to help you keep track of the taxes that you won so that you can avoid these penalties that come when you make an error. An accountant will help you properly prepare yourself to file your taxes and make the appropriate estimated tax payments.
It is Important to Separate Personal & Business Finances
When you’re a business owner, it can be easy to use a credit card for both your business and personal needs. It can make it difficult to differentiate business from personal expenses though. The IRS may say that legitimate business expenses don’t qualify. Combining these two expenses, it can be hard to keep your business expenses straight which will then lead to errors. If you have errors that are large or deemed severe, you may find that you are facing additional fines, penalties and even interest.
Filing Taxes Late
Just as individual tax payers are expected to turn in their taxes on time, so are those that own and run their own business. If you fail to do so, you could be facing penalties that could have totally be avoided. To avoid this problem, ensure you are fully aware of deadlines and expectations so you aren’t facing fines.
Payroll Tax Deposit
Most businesses have employees, and for those that do, you are expected to deposit payroll taxes. If this isn’t done on time or is full of errors, you could be facing steep fines and penalties. This is just another reason you should enlist the help of an accounting and tax firm to help you keep track of all your tax needs and bookkeeping responsibilities.
Tax Preparation, Filing, Planning & More in Salt Lake City, St. George, West Valley City, Provo, Orem, West Jordan & Greater Cedar City, Utah
At Mark Dicus & Company, we provide our clients with the best when it comes to making their business bookkeeping and tax needs. You know that when you leave it to us, you will be able to avoid the penalties and fines that can come from tax errors. Call us today!