Wrong - taxes affect a business each time the business makes a purchase. Why? Because
in business, purchases need to be both ordinary and necessary to be deductible. These
need to be commonly accepted in your trade of business although they don’t need to
be indispensable to be considered necessary.
When you wait until the end of the year to create financial statements, you have
no idea what your taxes will be. Being prepared is essential to minimizing taxes
and penalties assessed by the tax authorities.
In addition, a business has many types of taxes to monitor, file returns, and pay
on time. Trying to wade the arena alone can be foolish because there are so many
deadlines that it’s easy to miss them. Despite its nickname, the IRS is not your
Working with a knowledgeable professional can make all the difference between always
trying to catch up and feeling in control.
The key to a smooth tax return is being organized: during the year and at tax time.
Depending on your situation, you may also need to review your tax situation through
out the year to make sure that you don’t miss important deadlines.
Keep important documents aside because sooner or later, you will need them, specially
those that involved making money. Your filing system does not have to be fancy -
just a box can be enough as long as it’ not full of irrelevant stuff and not missing