• Link to Facebook
  • Link to Youtube
  • Link to X
  • Link to LinkedIn
  • Link to Flickr
  • Link to Slideshare
  • Link to Rss this site
  • Donate
  • Subscribe
SBDC Tampa Bay
  • Home
  • Solutions
    • Certifications
      • Business Certifications
      • Minority-Owned Business
      • Woman-Owned Business
      • Veteran-Owned Business
    • Consulting & Training
      • Training
      • Training Calendar
      • Consulting
      • Schedule a Consultant
      • Consultación
    • Business Solutions
      • Growth Acceleration
      • Government Contracting
      • International Trade
      • Starting Your Business
      • Disaster Preparedness
      • Student Teams
      • Financing Your Business
  • Resources
    • Business Resources
    • Frequently Asked Questions
  • Insights
    • Blog
    • Media Inquiries
  • About Us
    • Mission / Vision
    • Consultants
    • Meet the Staff
    • Meet Our Clients
    • Partners / Affiliates
  • Training
    • Training Calendar
    • On-Demand Training
  • Results
    • Success Stories
    • Economic Impact
  • Locations
    • Tampa
    • Hernando County
    • Highlands, Hardee, DeSoto
    • Hillsborough
    • Manatee
    • Pasco County
    • Pinellas County
    • Polk County
    • Sarasota
  • Contact
  • Request a Consultant
  • Click to open the search input field Click to open the search input field Search
  • Menu Menu
Blog

Tax Preparation Tips for Businesses

Blog, Featured News, Finance, SBDC News

Tax Preparation Tips for Businesses

by Simplice Essou, CPA | December 28, 2021

For most taxpayers the preparation of and filing for taxes can be a daunting task. However this can be mitigated by adequate preparation and yearlong bookkeeping and accounting. Do not wait until the end of the year to start working on the bookkeeping.

It is essential that management invests in a robust and reliable accounting system such as QuickBooks. It is also recommended financials to be prepared and reviewed at least quarterly so that issues can be researched and corrected as they arise.

Below are a few tips that could make your 2021 tax preparation and filing go smoother:

  1. Account for all revenue items either from sales, interest or investments.
  • Receipts from sales of goods or services
  • Returns and allowances
  • Interests from saving accounts
  • Accrual sales (Account receivables)
  1. Account for all Cost of Goods Sold (COGS).

The business’s COGS is the total amount paid for goods directly related to the sales of the products. This may include the finished products purchased for resale or the cost of raw materials and labor costs directly related to the production and sale of the products. It is also important to take an inventory at the end of the fiscal year as the beginning and ending inventory amount enters into the calculation of the Cost of Goods Sold.

  1. Account for all business expenses.

Expenses that are ordinary and necessary to produce income are fully deductible. The following list shows some of the most common expense items:

Advertising and marketing, utilities, lease expenses, office expenses, supplies, licenses, bank fees, credit card processing fees, interest expenses, payroll and payroll related expenses, internet expense, telephone expense, travel expenses, contract labor expense, depreciation, insurance expense, professional fees, home office, and health insurance.

  1. Know when your taxes are due.

Make sure you know when the taxes are due. For a C corporation, an S corporation or a, the due date is March 15. For a sole proprietorship or a one member LLC taxed as a sole proprietorship it is April 15. If the business needs more time, be sure to file an extension. If you have a tax payment that you cannot pay, contact the IRS to request an installment plan.

  1. Take advantage of COVID 19 Tax Credit.

During the last two years Congress has passed several relief bills targeting small businesses. These include: The Employee Retention Tax Credit, the Paid Leave Tax Credit, the Sick and Family Leave Credit, and the Paid Leave Credit for Vaccines.

Before the end of the year, it is a good practice to review your financial statements to assess the business’s financial health and if needed defer or accelerate income, make necessary purchases, claim bonus depreciation, establish a retirement plan, and more.

It is recommended you hire a tax professional to assist you in the preparation and filing of your taxes.

Author: Simplice Essou

Share this entry
  • Share on Facebook
  • Share on X
  • Share on LinkedIn
  • Share by Mail
https://enwqtxc9es4.exactdn.com/wp-content/uploads/2022/01/Tax-Preparation-Tips-for-Businesses-.jpg?strip=all&lossy=1&ssl=1 750 1420 sbdclarry /wp-content/uploads/2024/10/Locked-Host-Logos-Horizontal-USF-Small-e1728920602651.png sbdclarry2022-01-11 22:33:032022-01-11 22:33:03Tax Preparation Tips for Businesses
Subscribe to Newsletter

Categories

  • Business Essentials
  • Business Plans
  • Buying a Business
  • Certifications
  • COVID-19
  • Crowdfunding
  • Disaster Preparedness
  • Economic Development
  • Finance
  • Government Contracting
  • Growing Your Business
  • Healthcare
  • Human Resources
  • International Trade
  • Marketing
  • Press Releases
  • Radio and Podcast
  • Starting a Business
  • Success Stories
  • Success Stories Videos
  • Tech Commercialization/Tech Transfer
  • Veteran
  • Web and Social Media

Contact Us

Regional Office Contact Info

USF CONNECT
3802 Spectrum Blvd., Suite 201
Tampa, FL 33612

813-396-2700

Subscribe to Our Newsletter

Florida SBDC Network

The Florida SBDC at the University of South Florida is a member of the Florida SBDC Network, a statewide partnership program nationally accredited by the Association of America’s SBDCs and funded in part by the U.S. Small Business Administration, Department of Defense, State of Florida, and other private and public partners, with the University of West Florida serving as the network’s lead host institution. Florida SBDC services are extended to the public on a nondiscriminatory basis. Language assistance services are available for limited English proficient individuals.

Logos

Business Assistance

USFMuma

State Designated as Florida’s Principal Provider of Business Assistance [§ 288.01, Fla. Stat.]

© Florida SBDC at USF | contact webmaster
Link to: Accounting Tips for E-commerce Businesses Link to: Accounting Tips for E-commerce Businesses Accounting Tips for E-commerce BusinessesAccounting Tips for E-commerce Businesses Link to: Sarasota Native Fulfills a Local Need Within the Community Link to: Sarasota Native Fulfills a Local Need Within the Community Sailor Girl Transport of Sarasota CountySarasota Native Fulfills a Local Need Within the Community
Scroll to top Scroll to top Scroll to top
  • Get Answers