To be at peace with the authorities, you should always file your returns on time. If you want to avoid brushing shoulders with the tax authorities, you need to file your tax returns on time.
Your business will operate without interference from the tax authorities if you have a good record of tax paymentcheck it out!.
In most circumstances, there can be errors during this process and a business owner should make sure that they correct them as quickly as possible, or else they’ll attract penalties. One of the imminent mistakes is the late filing of returns which will attract penalties.
When filing business tax returns, there is always the possibility of oversight so always be careful. Illustrated below are tips to help you avoid possible business tax mistakes.
The first thing you should do is check the deadline for filing the returns. Due to your tight business schedule, you rarely check the important dates on your calendar.
It is, therefore, necessary to have in your schedule a marked tax deadline to avoid late payment of taxes.
You will be forced to pay a fine for late payment of taxes. Your secretary can help you keep these records to avoid the late filing of returns.
Misclassification of employees is a mistake that every business should avoid. In a business, if you hire a contractor to do a job for you, make sure you clarify whether they are independent or permanent employees in your organization.
Also, whether it is a contractor or an employee, depends on how much control you have over them.
An employer always has control over their employees so make sure that you classify your employees and independent contractors separately. You should also make sure their salaries are classified separately when filing tax returns.
It is also advisable that you avoid mixing your personal and businesses expenses. This can be a real mess up and will cost you a lot of money to rectify.
Many people are fond of paying for all their expenses using the same credit card as it seems easier that way. You should avoid this since mixing of the expenses always results in an audit of your accounts.
It is necessary, therefore, to have a separate business bank account with its own business records.
It would be best if you open separate accounts to make it easy for you when filing tax returns. It would be best to keep records of all your expenses, especially when you choose to use a similar account for all your expenses.