While this year's tax deadline has come and gone, many businesses around the country will want to find more efficient methods of completing their paperwork in the future to meet the federal government's expectations in coming years. For those looking for new methods that can improve their practices in the near future, they aren't alone, and there are tips they can follow for next year and beyond.
Taxes weigh on productivity
The Washington Business Journal reported that many businesses can struggle heavily with the prospects of complying with the federal tax code. Nearly 60 percent of small business owners lose a week's worth of productivity when they deal with their taxes, a recent survey found. That figure becomes more pressing when almost half of all small business owners have spent more than $5,000 per year on accountants and similar administrative costs, and those figures don't even include the taxes they pay.
There are hopes that the process could be streamlined. About two-thirds of small business owners have reportedly supported moves toward tax reform that would reduce tax rates while eliminating deductions, while about half support a national sales tax. It's not expected that these will be implemented in the near future, however, though there are other improvements businesses can find.
Tips for the 2014 fiscal year and beyond
Bloomberg Businessweek added there are a number of ways businesses can better prepare their taxes in the upcoming fiscal year and beyond, many of which will help them beat out last-minute rushes. For instance, anyone who is self-employed or can meet early tax standards can consider the prospects of paying estimated taxes. While this can be expensive, it can also help individuals better meet the expectations of the market.
Equipment is another key way businesses can ease their tax needs. If one year's income is low, depreciating business equipment and property expenditures can be a key way to improve practices. Carryovers like deductions and tax credits can be reapplied in different years depending on revenue, which can mean a number of consecutive filings can see business improvement.
Perhaps the easiest way to boost tax revenue is to avoid penalties. The corporate tax filing date is normally in mid-March, and jumping out ahead of that expectation can be highly beneficial.
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