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5 Most Common TAX Questions Small Business Owners Asked

Taxation time is tricky, especially for small business owners, as it is a completely new venture. Above all, performing hundreds of tasks every day adds another layer of complexity. If you feel stuck about taxes, rely on tax preparation services in Clifton Park. If you’re confused about what to ask your CPA, we have got you covered. This article highlights the 7 most common tax questions small business owners ask. Let’s dive in! 

Tax Questions Small Business Owners Asked

1. How often should I pay tax as a small business owner? 

Generally, taxes are paid during the end of the financial year which ends in the month of March every year. Your total income and tax deductions determine the total tax paid. Further, you can file an ITR for returns. 

2. What services will a CPA offer me? 

Some of the primary services that a CPA offers to a small business are:

  • Tax advice and planning
  • Audit and assurance services
  • Management and consulting
  • Forensic Accounting
  • Payroll administrators
  • Bookkeepers
  • Long-term planners
  • Tax filer
  • Financial planning
  • Management Accounting

Besides these, they are also involved in offering financial advice and making investment decisions occasionally for smooth functioning. Since most business owners prefer hiring accountants and CPAs, they ask this question for transparency. 

3. What are some of the most common tax deductions for a small business? 

Some most common tax deductions for a small business include vehicle tax deductions, travel tax deductions, home office expense tax deductions, advertising and marketing tax deductions and office suppliers tax deductions. 

4. List some tips to improve cash flow in small business

Some significant tips to enhance your business cash flow are: 

  • Get paid as soon as possible 
  • Improve inventory management 
  • Offer discounts for early payments 
  • Leasing not buying 
  • Give customer penalties 

5. What are some vital accounting tasks essential for your business growth? 

Major accounting tasks important for your business growth are reporting about your company’s profit and loss, budgeting, choosing a fixed accounting method, managing cash flow, payroll and more. 

Wrapping Up 

Taxation is the most important aspect of your small business, which can take a toll on your mind if not done rightly. Thus, you must hire an experienced professional who help you manage all tax-related tasks. These are the top five questions every small business owner asks.