Tips for Successfully Filing Business Taxes
by Camile Clarke
It is hard to imagine that there could be something more daunting to new entrepreneurs than the actual step of starting a business. Most entrepreneurs
approach tax seasons with angst and would avoid it like the plague if it was optional. I wish I could write an article on how to avoid the entire mess, but
alas, we would both likely end up in jail for our efforts (or lack thereof). I will share instead some tips that will have you sailing through tax season and filing
your business taxes like a boss.
sailing through tax season and filing your business taxes like a boss.
1. Know your Tax Forms 3. Get Organized 6. File Online
Be sure to know how your business is
categorized before starting the process,
especially if you are new to the business of
entrepreneurship. The Tax Association of
Jamaica (TAJ) uses different forms based on
the type or category of business. For
example, companies use the IT02 forms
while people who are self employed or
employed with other sources of income Getting and staying organized ensures
smooth sailing right up to tax season.
Having organized documents can save you a
penny or two if you decide to hire a
Certified Public Accountant (CPA).
Professionals may charge extra if they have
to deal with messy accounting before
actually starting the process of filing
returns. Your level of organization will 7. Hire a Professional
would use the S04 form. oftentimes determine whether you will file
on time or not.
4. Digitize Documents
It is no secret that managing a business
requires copious paperwork, from tax
forms to receipts. Receipts are notorious for
fading after a while and should be some of
the first documents to be scanned or copied
for
preservation
and
safe-keeping.
Digitizing documents not only provides
insurance against the possibility that
important documents can be destroyed; it
2. File on Time
Filing taxes on time is not just about
meeting the deadline. Failing to meet
deadlines often incurs costs that could have
been avoided. Working against the clock
when filing taxes runs the risk of making
errors that can result in late filing.
Oftentimes, poor organization is the root
cause of tardiness. So, getting all your ducks
in a row will put you on track to file taxes
on time. Taxes are due by March 15th of
each year.
Issue �: July ����
paves the way for easy organization and
filing taxes online.
5. Use Accounting
Software
Accounting software has evolved over the
years and is today so user friendly that it
can be manipulated by individuals with only
basic accounting experience. Software such
as Quickbooks or Waves facilitates easy
data entry, automatic generation of reports
and can significantly reduce the chance of
errors when filing your taxes.
The Tax Administration Jamaica facilitates
online filing through the Revenue
Administration
Information
System
(RAIS). Do away with the long lines at the
outlets and file in the comfort of your home
or office. This service is available 24/7 at no
cost and is quite user friendly.
Many entrepreneurs are not afraid to admit
that many times they cannot make head or
tail; or can make tax related documents. If you
would rather not undertake this mammoth
task alone, you can always hire a CPA. A
professional touch in filing taxes will put you
at ease so you can go about running your
business. An added plus of using the services
of professionals is they could put you in line
to get favourable deductions and benefits.
8. Get Training
Knowledge is power. In the entrepreneurial
world, knowing how to go about filing your
taxes is sort of a super power when you
consider that most persons may seek
professional assistance. Training in any field is
always beneficial when one considers that
knowledge gained is never lost. The Jamaica
Business Development Corporation (JBDC) is
one entity that can provide training on business
related processes. Training and workshops are
offered
through
their
Business
Advisory
Services and can be customized to suit your
entrepreneurial needs.
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