You may not think much about your business's current financial or tax situation during the summer. However, when you're halfway through with the year, it won't be long until you have to start looking at the incoming and outgoing expenses in your business. Therefore, this is the perfect time to brush up on your current situation and see what steps you need to take as you move forward through the rest of this year. Read on to learn a few small business tax tips that are important right now.
Don't Forget Important Deadline Dates.
If you requested a tax extension prior to the regular April 15th filing deadline, then you may want to consider right now the best time to complete your tax filings. The extension deadline is October 15th, which is only a couple of months from mid-year. Get you deductions nailed down, conduct your calculations, and file that tax return.
In addition, if you pay estimated taxes as a self-employed contractor who receives 1099s at the end of the year or an owner of a small business, then September 15th is your deadline to get those paid. Remember, these dates don't typically change from year to year, so it may be a good idea to put these down on your calendar.
Begin to Review Your Current Business Situation.
What business have you done since the beginning of the year? Will this same type of work be done throughout the remainder of the year? Do you have plans to add a new business to your repertoire before the end of the tax year? Take the time to ask yourself these questions and related questions so that you can take a look at how any potential upcoming changes may impact your tax situation for the remainder of the year. If things are good, then major financial or tax decisions probably don't need to be made right now.
Examine Your Current Financial Situation.
Although we've mentioned looking at your business situation, it is also a good time to review your overall financial situation. How much income have you made so far this year? Where has it came from? What have your expenditures been so far this year? Look at ways you can increase tax-free income and reduce your overall liability for taxable income. Look at cutting your expenses as well, such as opting for cheaper office supplies, making adjustments to a budget, etc.
For more mid-year tax tips or to schedule a review of your financial situation and to make sure you are o the right track, consult with a business tax preparation individual or an accountant.