Online Taxes and Your Small Business

January 18, 2016

Taxes on a CalendarTaxes….. a word that sends shivers down almost everyone’s spine. If you are like many small business owners, you probably find yourself with very little free time and the thought of spending hours getting your books ready and up-to-date is a daunting one. Fortunately, there is an easy solution to this problem and it is online taxes and record keeping.

The government has been accepting taxes online since 1997. However, not very many small companies have been making use of this very valuable time saving feature. Furthermore, the IRS is accepting records that companies keep and store electronically. If you plan to use the service, the first step is to make certain that you have all the correct information regarding the IRS rules and guidelines.

Among their rules, the IRS demands that you have a back-up system in place. They also require that you do regular back-ups. Many companies choose to use an external hard drive for this purpose, as well as have an online file system. The external hard drive should be kept in a secure location at all times. Although keeping all those little tiny scraps of paper is something you are trying to avoid, if you have any doubts or concerns, you may not want to destroy them.

The IRS will allow you to scan in all of your documents. However, it is up to you to make certain that each scan is clear and legible. The IRS is not going to accept excuses about the poor quality of your scans. Furthermore, you may be asked to create hard copies of your files, so make sure your information can be printed if requested.

With a bit of research you can find a number of services online, which will help you store all of your records. However, remember that before you give over any of your business information, it is extremely important you investigate the service and select one that is private, reliable and secure.

A good way to ensure that tax time is not a complete nightmare is to set aside a little bit of time each week updating all of your records. Scan all of your receipts at least once a week. This simple plan will ensure that you are able to read them easily before they fade or get lost.

Taxes are inevitable; however, they can be made bearable. Take time at least once a week to store and scan data. Have all of your records backed up in two locations and most importantly read all of the rules and guidelines set out by the IRS in regards to electronic taxes.

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