It is a common misconception that tax season hits a small business owner one time a year. In fact, the small business owner is being periodically taxed, which makes it important to stay on top of the deadlines to avoid unnecessary fines. If you are living in the Miami area, it is recommended to get in touch with a company that performs bookkeeping services in Miami in order to ensure that you are complying with the proper deadlines. According to Miami bookkeeping, here are four reasons that the tax season does not end in April for small businesses:
1. Estimated Tax Payments. If a small business is paying a quarter of what they owe, they usually break up their balance into estimated tax payments that may be made quarterly. If your business has decided to do this, then it is imperative that you stay on top of the deadlines.
2. Payroll Taxes. Payroll taxes are something that needs to be paid quarterly as well. Many businesses are unaware of this fact and it causes many misunderstandings when they are billed for their taxes many times per year.
3. Sales Taxes. Sales taxes for any prospective sale made also need to be paid by small businesses. By staying on top of this, small businesses owners can rest assured that they will not be penalized.
4. Property Taxes. If your business owns an office space, be prepared to pay the relevant property taxes. This is a common misconception that many people are unaware of and need to factor into their taxation calculations.
The reality is, a small business owner is being taxed year round. The important thing to remember is that you should have a calendar setup so that you are not missing any essential deadlines. By doing this, you will be able to avoid any unnecessary fines and stay in the good graces of the IRS.