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Small
Business Tax Software
Small business tax software is available from many software
companies. The small business absolutely needs to manage its taxes,
just as much as it needs to manage revenue and expenses related to its
products.
The very first thing a small business owner should
decide about when filing his taxes is if he should calculate and file
his own taxes, or hire an accounting firm to do it for a fee. The small
business should process its taxes if:
- Resources are limited
- There is someone on staff that has some
accounting knowledge
- The business transactions aren't overly
complicated
- There is a desire to do your own taxes
- You've been keeping good accounting records
Good accounting records should be a prerequisite before you try to do
your taxes. Invest in accounting
software
and keep your transactions up-to-date, this is good business. If there
are good accounting records, then the numbers you need for your taxes
will be at hand.
Good small business tax software can be
inexpensive and easy to use. Turbo tax and H&R block software
are a
couple of the more popular ones. Be sure to get the proper software for
your needs though:
- If your business is a sole proprietorship, then
all you need is a home and business type software.
- If
however, you business is a corporation or partnership, you should
invest in the more expensive software that is able to handle the needs
of these type of businesses.
The tax software will walk the
user through each step to filing his taxes. The software is in a
question and answer type format. The user just needs to answer the
questions by filling in the response boxes. The software fills in the
appropriate tax forms and some will even e-file
for you.
I've
used both Turbo Tax and H&R Block and don't have a preference
for
either one. They both do a fine job. Once you have used either of these
software packages, the information from the prior year will
automatically populate into the new year's taxes. This is a tremendous
time saver.
And, if you use Turbo Tax this year, you can use
H&R Block next year, or vice versa, since the softwares are
able to
recognize each others information and pull it into their software.
Depreciation schedules, investment information, basic setup
information, are all pulled in from last year. If you had carried over
losses, etc, that is recognized and included in the calculations.