Navigating tax season as a small business owner can feel daunting, but with the right strategies, you can streamline the process and maximize your returns. We sat down with Katy Ufferman of Maxwell Financial Management and Richard Martin of Bluestone Wealth Partners to bring you practical tips for a hassle-free tax filing experience.

Tip 1: Get Organized Like a Boss

Maintain meticulous records throughout the year to streamline your tax filing process. Keep track of expenses, income, receipts, and invoices systematically to ensure accuracy and efficiency. Utilize document management systems like Google Drive or Dropbox to store and organize tax-related documents electronically. For real-time expense tracking, consider using integrated tools like Mint or Wave to stay on top of your finances effortlessly. 

Tip 2: Hire the Right Accountant

Choosing the right financial wingmate is crucial. A seasoned accountant can help you navigate the tax skies, spotting deductions, maximizing credits, and ensuring compliance – saving you time and headaches along the way.

Tip 3: Leverage Financial Tools

Explore software solutions such as QuickBooks Online or FreshBooks for efficient bookkeeping, Gusto for automated payroll processing, Expensify for easy expense tracking, and TaxJar for simplified sales tax compliance. These tools streamline financial management, saving you time and ensuring accurate record-keeping, allowing you to focus on business growth.

Tip 4: Cash in on Deductions and Credits

Don’t leave money on the table! Hunt down deductible expenses like office supplies, equipment purchases, and business travel. Stay savvy with tax incentives, like the 20% qualified business income deduction, to supercharge your savings. While considering Section 179 for immediate asset deduction, be cautious about overspending on cars just for tax benefits. 

Tip 5: Tap into Community Resources

Take advantage of community-specific initiatives and partnerships available to small businesses in Columbus, OH. Organizations like the Small Business Development Centers of Ohio offer programs and resources tailored to local businesses, providing valuable support for tax-related assistance and financial planning.

Tip 6: Capitalize on Columbus-Specific Perks

Explore tax incentives tailored to Columbus, like the 20% qualified business income deduction. Additionally, take advantage of tax abatements in Westerville’s business district and the lack of city income tax in townships like Jerome Township in Dublin. By capitalizing on these opportunities, small businesses can maximize their tax returns and improve their financial standing.

Tip 7: Look into a Simplified Employee Pension (SEP)

With a SEP, contributions are tax-deductible, and there are no taxes on investment earnings. The flexibility of SEP contributions allows businesses to decide annually on the amount to contribute to employees’ SEP-IRAs. However, there are contribution limits. Contributions cannot exceed 25% of an employee’s compensation or $66,000 (for the 2023 tax year), whichever is lower. Contributions must be made to all participants’ SEP-IRAs, including those who may have left the company, and generally must be uniform across all participants.

Tip 8: Know When to Call in the Pros

Know when to seek assistance from financial advisors or tax professionals, especially for complex tax matters or strategic planning. Professional guidance can help you navigate audits, resolve tax disputes, and optimize your financial strategy.

Ready to tackle tax season like a pro? Arm yourself with these expert tips to streamline your filing process and turbocharge your returns. For extra support, Maxwell Financial Management and Bluestone Wealth Partners are just a call away!