Ever since the economic recession hurt the world, individuals have been turning to operating freelance online. And that’s why I’m writing this article for the new small business owners.

In this text, I’m going to be discussing a few necessary small business tax saving tips so that you just won’t go crazy filing your taxes at the end of the year. Thus here are the five tips you would like to bear in mind of.

1. Separate your personal and business expenses

Currently that you simply are a business owner, you should perceive that you are spending money for various reasons. It'd be a record keeping nightmare to co-mingle your personal and your business expenses and income. The best approach to do this can be to use separate checking accounts and credit cards, one for business and one for personal.

2. Keep track of every of your receipts

If you are new to small business taxes, you will not recognize which expenses is tax deductible. When you are doubtful, save your receipts in a very safe and easy to remember place, so that you'll be able to raise your tax preparer for his recommendation when year end comes.

3. Realize by yourself the tax deductible things

If you've got a heap of business expenses, you may end up with lots of receipts. Rather than stashing them all, it'd be easier if you knew in advance that expenses were deductible and then save only those receipts. There's tons of free data about this online.

4. Set up a system for quick bookkeeping

McDonalds did not become a large fast food franchise without a system. If you want to keep yourself sane and file your taxes as painlessly as possible, contemplate putting in a system to organize your paperwork. Schedule a time every month where you key in invoices into your bookkeeping software.

5. Get a six-month Extension on your tax filing deadline

Have you ever seen anyone smile when the deadline for tax filing gets closer and closer? I’m certain you don’t need to be pulling your hair when the deadline could be a few days away. To create matters worse, that's the only once of year that tax professionals are least on the market for answering your questions. Want an easy answer? If you file IRS Form 4868 you can get an automatic 6-month extension and your NEW tax-filing deadline will be Oct. 15, not April 15.

In conclusion, if you understand these basic tips of small business taxes and apply them, you can stay sane while doing all of your tax filings.