4 Tax Tips for Boulder Small Business Owners

Nearly 500,000 small businesses exist in Colorado, and all of them are responsible for remitting taxes. Small business in Boulder are no exception, and face varying tax depending on the industry. That’s why using a professional early, rather than later, is critical to limiting fines, penalties or excessive end of year liabilities.

Annual taxes are only one part of the puzzle, however, and small business owners need to know what they are responsible for throughout the year and how to stay on top of it. Here are four tips for tax preparation that Boulder small business owners need to know.

  1. Keep good, on-going financial records. Many times, small business owners will pull together their tax documents last minute, after not staying on top of their financial data through the year. At minimum, owners should be looking at their transaction records at least quarterly, if not monthly. This will reduce errors by catching them early so they can be corrected. It also allows for any “course corrections” that need to be made in regards to remitting estimated payments.
  2. Don’t wait until the last minute. If you don’t have a good accounting software, get one, or better yet, get a monthly accounting firm to maintain your financial records. Waiting until the last minute to do your Boulder small business tax preparation can cost you penalties, fines and interest, which can be a huge liability if you don’t have the money for them. You may miss out on being able to take advantage of tax strategies.
  3. Don’t comingle funds. All your business accounts need to be separate from personal accounts. Rather than having personal transactions pull from the business, pay an owner’s distribution, or put yourself on payroll. Understand how your CPA wants expenses categorized and maintain consistency, or, hire a monthly bookkeeping service in Boulder. When accounts are co-mingled, the IRS can audit all accounts, personal or business, opening you up to unwanted scrutiny.
  4. Educate yourself. Understand basic tax deadlines and tax savings principles. Your trusted CPA in Boulder should be more than just a number cruncher – your CPA firm should be educators and help you to make better decisions in your business to reduce the chance of audits, penalties, and large liabilities. If your CPA firm isn’t a valuable resource, it may be time to find a new one.

Scher Group is a local, Boulder County CPA firm aware of all Federal, State and local tax laws pertinent to preparing your small business taxes and providing monthly accounting services. By staying on top of annual changes, we can help you plan better and get all the deductions you are entitled to. Engaging with your accounting firm monthly or on a quarterly basis is the recommended solution to avoiding costly mistakes. Don’t wait too long to find a Boulder County Tax professional to help you sort through your bookkeeping and tax planning needs. Contact Scher Group today at 303.443.9001.

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