# Tips for Small Business Owners to Stay on Top of Taxes
As a small business owner, staying on top of your taxes is crucial for the financial health of your business. Here are some dos and don’ts to help you navigate the complex world of business taxes:
## **Dos:**
### Stay proactive throughout the year
– Be diligent and stay proactive with your taxes year-round.
– Consider processes and tools to help you stay organized.
– Keep track of expenses throughout the year to ensure you have enough cash to pay taxes.
### Consult with a professional
– Work with a tax professional to navigate tax regulations.
– Uncover strategies to lessen your tax burden and help your business grow.
– Focus on your business while a professional handles tax-related tasks.
### Separate personal from business
– Open a business checking account to keep finances separate.
– Maintain a clear picture of all funds moving in and out of your business.
– Ensure all expenses and revenues have proof of a legitimate business purpose.
## **Don’ts:**
### Forget to reconcile
– Balance your books regularly to ensure accurate data for tax time.
– Reconcile financial transactions to source documents to avoid penalties.
– Make day-to-day financial decisions based on accurate data.
### Miss small expenses
– Keep receipts for all business expenses to maximize deductions.
– Track vehicle mileage and office supplies receipts for deductions.
– Safeguard your financial interests by logging all expenses.
### Overlook your different tax forms
– Understand your appropriate tax forms based on business size and entity type.
– Meet tax filing deadlines by staying informed about IRS rules.
– Check the IRS website for official deadlines and resources.
## **Stay on Top of Your Business Taxes Year-Round**
Filing taxes can be daunting, but with these strategies, you’ll have a clearer understanding of the process. Prepare for the upcoming year by organizing, maintaining your books, and finding the right filing strategy.
## **Small Business Taxes FAQs**
– **What percentage should a small business set aside for taxes?**
– Aim to set aside about 30% of revenue for federal and state taxes.
– **How can a small business maximize tax returns?**
– Account for deductible expenses like business equipment, supplies, and work-related car costs.
– Include items like interest, bank fees, licenses, and advertising on your income statement.
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*Post by: Michael Hitchcock*
**Company:** Intuit QuickBooks
**Website:** [www.quickbooks.intuit.com](https://quickbooks.intuit.com/)
**Connect with me on [LinkedIn](https://www.linkedin.com/showcase/quickbooks/) and [Instagram](https://www.instagram.com/quickbooks/).**
