Taxes Are A Year Round Chore For Small Businesses

The Chicago Tribune (2/28/05 Registration Required) reports that small business owners should take time throughout the year to organize finances and to understand the tax code.

The article states that one of the most common tax mistakes a small business owner makes is covering expenses out of personal accounts and failing to account for those expenses come tax time. By obtaining a basic understanding the tax code and organizing finances throughout the year, a small business owner will ensure himself/herself a less stressful tax season.

It is also important for small business owners to understand that a tax professional is only as good as the information that they are provided. Organizing finances will ensure that the small business is taking advantage of every tax benefit afforded it. Also, gaining a basic understanding of the tax code will allow small business owners to implement some tax planning strategies throughout the year to take advantage of deductions and to reduce overall tax liabilities. This little extra effort can pay off with big tax savings come April 15.