If you went to pay your quarterly taxes, saw the numbers, and thought, "Geez, that can't be right," you might be paying too much in business taxes.
It's actually really, really easy to overpay your business taxes. (Thanks, IRS.) And if don't catch it by the end of the year, you won't get that money back.
I'm here to help you keep as much of your money as legally possible and avoid the quarterly panic of tax time. If you suspect you're giving the IRS more than you should, keep reading!
Why You Might Be Paying Too Much in Business Taxes
The main culprit in overpaying your business taxes is missed deductions. If you're missing deductions, it's probably for one of two reasons:
1. You're unaware of all the possible deductions in your business.
As a small business, you can take advantage of tons of tax deductions - from the obvious ones like mileage and supplies to the dozens of lesser-known write-offs you could be missing. If you miss these deductions at tax time, you're literally giving your money away to the government. Nobody wants that.
The best way to prevent this is to speak to a professional. An accountant who specializes in small businesses will be able to look at your expenses, determine which are deductible, and save you hundreds (if not thousands) in taxes.
2. You're overwhelmed with your finances and deductions are slipping through the cracks.
Maybe you know exactly which of your expenses are deductible. But when tax time rolls around, you get overwhelmed with the mountain of receipts, say "screw it," and just pay whatever Quickbooks tells you to pay.
Look, I've been there. Tax time is so freaking stressful - and that's coming from a tax professional! If you make it a priority to prepare well in advance and keep your finances under control throughout the year, you'll be less likely to give up come December.
How to Prevent Overpaying Business Taxes
If you're missing deductions, don't beat yourself up. Like I said, it is scarily easy to overpay your business taxes. If you're afraid you've overpaid or want to prevent overpaying in the future, follow these tips:
Check-in with your finances regularly. I recommend checking your accounts weekly and managing your expenses monthly. This way, you won't miss any expenses and you'll have a clear sense of you much money you're really making.
Research industry-specific deductions. Aside from the standard deductions, there are tons that only apply to specific industries. Visit the IRS website to see if you apply for any of these.
Talk to a tax professional. No matter how much research you do, a tax professional will always have the upper hand when it comes to identifying potential deductions. Book a call with a trusted professional to find the deductions you're missing.
Take the Stress Out of Tax Season
Tax season is stressful enough, but it's even worse when you're paying more than you should. Set yourself up for a less stressful, less money-sucking tax season over in The CASH Club, my monthly membership for business owners who want to DIY their finances the right way.
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