Did you know that tax season is one of the number one ways businesses get into legal trouble?
If you don’t file your business taxes in the correct manner, you might face fines or other penalties. Incorrect tax filings include not knowing what business expenses to deduct or incorrectly representing your business’s net income.
So, preparing is a necessary step for every small business during tax season 2022. Below, we’ll get into the various steps you need to take to prepare for the 2022 tax filing season. Keep reading to learn how to navigate your taxes this year!
Know the Deadlines
Before you start planning for the tax season 2022 has, you should familiarize yourself with the deadlines.
There are several tax deadlines throughout the year. Following these deadlines will ensure you don’t incur penalties for failing to pay your taxes.
The big date to remember is January 31st, 2022. That’s the date by which you must give all W-2 and W-3 forms to your employees. If you have contractors, you may owe them 1099 or 1099-NEC forms on this date. This gives all your employees enough time to file their own taxes by the April 15th, 2022, deadline.
You might have additional deadlines based on the types of forms you need to file.
Get Your Documents Organized
No matter what types of forms you need to file, it helps to get organized before tax season. That way, you’ll know where everything is when you need it.
At this point, go over everything and make sure you have what you need. Schedule meetings with your accounting team or schedule an appointment with an accountant. Create internal deadlines for yourself to make sure everything stays on track.
The tax season can require you to put in a lot of long working hours. Most small business owners have to meet their tax requirements in addition to their regular workload. If you work too much, you might experience burnout.
Burning out can inhibit your ability to meet your tax deadlines. Burnout causes you to perform your job less well. You might notice yourself making mistakes you never make. If these mistakes make it into your company’s tax filings, you might incur unwanted legal complications.
So, you should try to prevent burnout on your team as much as possible. Encourage people to take frequent breaks. Check in with employees to make sure they don’t have too much on their plates. Keep your office well-staffed. If you can, hire people on a temporary basis to take care of the work you can’t handle.
How to Reduce Tax Season 2022 Stress
You can also hire a team to help you file your taxes, taking work out of your hands.
At Orcutt Financial, our team of professionals helps small businesses prepare for tax season 2022. We’ll go over all the details you need to take into consideration. Then, we’ll help you plan for tax season so you can avoid burnout and stay on schedule!
We can also help you with your accounting and payroll needs, reducing your risk of making mistakes.
Want to learn more about what we can do for you? Contact us today!