Chicago (PRESS RELEASE – October 2, 2010) – Small business owners can benefit by paying taxes quarterly rather than annually. This is an ideal way to avoid having to pay a large lump sum every year. Rather, payments can be spread to every three months. However, a small business owner must be organized, disciplined and maintain accurate bookkeeping records. Bookkeeping.net offers three easy steps that business owners can take to simplify the process.
First, small business owners should get advice from a qualified tax professional to ensure that paying taxes quarterly rather than annually will be financially beneficial. A tax professional can help save a client money and time by avoiding additional tax penalties and by handling the small business bookkeeping for when the taxes are filed.
It is important to note that although payments are made four times a year, taxes are filed only once a year. The amount that is owed is simply divided into four equal payments so the total amount is more manageable.
Second, a small business owner will need to contact the IRS and fill out a 1040-ES form. This allows for the IRS to issue payment vouchers and set up an account so taxes can be paid quarterly.
Finally, a small business owner will need to ensure their bookkeeping is maintained so they are able to manage the due dates of the payments. These dates are April 15, June 15, September 15 and January 15. If any of these dates fall on a holiday or weekend, the payment will be due the next business day.
When managing the bookkeeping to ensure these payments are made quarterly, it may be advisable to set up a separate bank only for tax payment savings. By having 25% of all funds made directly deposited in this account, an owner can simplify saving for the payments.
Bookkeeping.net offers a free service that connects businesses with bookkeeping professions to manage their specific needs. You can find the perfect fit for your business, whether you are interested in payroll processing, accounts payable, accounts receivable, tax reporting, bank reconciliations, financial statement creation or simply general bookkeeping.