Business Right Side of IRS | JillAlexa.com
Every business owner loves the IRS, right? Well, maybe not so much. Although they are just doing their jobs even the mere mention of the taxman can send a chill into the heart of the average business owner, even if they believe they are doing everything right.
No one wants to get on the wrong side of the IRS, but it is so easy to make mistakes that will have them coming down on you like a ton of bricks!
The good news is there are many ways to keep your business legit.
Quick Tips to Keep Your Business on the Right Side of the IRS
Below, are some top tips to help you stay on their good side and get the financial side of your business right, right from the beginning…
1. The Payroll Panacea
Let’s start with payroll, the Achilles’ heel of many a small business.
Mismanaging this can lead to a tango with the tax man that’s about as enjoyable as stepping on a Lego.
Enter payroll outsourcing: your knight in shining software.
It’s like hiring a nanny for your numbers; they take care of the dirty work (taxes, withholdings, filings) so you can focus on the fun parts of running a business, like making money and deciding which type of office coffee reigns supreme.
2. Receipt Hoarding
Yes, saving receipts is about as thrilling as watching paint dry, but these little pieces of paper are your golden tickets in the Wonka factory of tax deductions.
Think of each saved receipt as a mini-shield against tax woes. And in today’s digital age, you don’t need to keep a shoebox under your bed; digital hoarding is all the rage.
There’s an app for that, probably several.
3. Quarterly Taxes
The Serial Drama: Don’t wait for the season finale to find out you owe a mountain of taxes.
Paying your dues quarterly is like giving the IRS a friendly nod throughout the year, showing them you’re on top of things.
It’s less painful than one lump sum and keeps you off their radar.
Consider it your business’s subscription service to peace of mind—minus the free trial period.
4. The Fine Art of Classification
Employee or contractor? That is the question.
Misclassifying your workers can lead to a plot twist no business owner wants.
The IRS does not appreciate surprises, especially the kind that results in less paperwork for them.
When in doubt, err on the side of caution, or even better, consult an expert.
It’s like choosing between scissors and a chainsaw for a haircut; precision matters.
5. Audits: Don’t Be The Low-Hanging Fruit
Audits are like dental check-ups; no one looks forward to them, but they’re less painful if you’ve been taking good care of things all along.
Keep your records tidy, transparent, and as detailed as a novelist’s first draft.
The goal is to make your business as uninteresting as possible to auditors, turning their probing gaze elsewhere.
6. The Education Elixir
Tax laws have the stability of a house of cards in a wind tunnel. They change. Often.
Staying educated on these changes is not just smart; it’s survival.
Attend workshops, subscribe to newsletters, or use an accountant who’s so on top of tax laws, they dream in numbers.
7. When in Doubt, Shout (for Help)
The do-it-yourself approach is admirable, but when it comes to taxes, sometimes it’s best to call in the cavalry.
Whether it’s a CPA, a tax attorney, or a financial advisor, getting professional help can be the difference between a slap on the wrist and a full-blown audit.
The IRS and you? Best friends from now on!
