Things You Need To Know About The 2018 Tax Planning Spreadsheet For Entrepreneurs

By Ruth Edwards


Filing tax returns is one of the most overwhelming task business owners engage in. Many traders find the process difficult because they do not know how to file returns. Although hiring an accountant is the best option to file returns before deadlines, these option has proven to be expensive for many small businesses. One of the many reasons, small business owners choose to file returns without professional help. With the 2018 tax planning spreadsheet for entrepreneurs, you can prepare returns and plan your finances.

Calculate the amount of income your business generates on an annual basis. Most businesses face numerous challenges in preparing taxes because they do not identify their clients. It is important to consider places where most of the business income comes from. Each resource generates a unique figure. Write the name of the company or store alongside the amount it generates. This makes work easy when you are looking at cutting business ties with companies that generate less income.

Calculating expenses is time-consuming and stressful for any trader. There are many entries required at this stage. To ensure you calculate your expenses according to set standards, start with the payroll sector. Remember, the nature of your business determines how you pay salaries. Consult a business expert to find out which type of trader you are and how you should pay salaries.

Most companies overlook expenses such as rent, utility bills, and contracts. It is important to account for these expenses to avoid errors on tax returns. Use receipts to track payment of utility bills and contracts. You may hire a contractor on a short-term or long-term basis depending on business needs. Add this information on the worksheet to avoid double entry.

There are many benefits to enjoy when you choose 2018 tax planning worksheets. Filing income returns is a tedious procedure many people choose to delegate to professionals. With a worksheet, all complicated calculations are taken care of. You are not required to tally numbers by hand. Taxpayers are required to input figures in respective columns and let the worksheet tally the total amount automatically.

It is easy to miss credits and tax deductions when you choose to file returns manually. A spreadsheet helps you determine if you qualify for deductions and credits. Most online programs ask various questions to determine the number of deductions and credits you are eligible to. Revenue authorities cannot reassess deductions or credits if you missed calculations in the previous year. Use a worksheet to generate the exact amount of deductions.

Worksheets are computerized applications designed with different math formulas. This means they can handle any type of math calculation and produce accurate figures. Preparing returns using spreadsheets is encouraged because tax planning tools detect errors and offer solutions. You can rest assured your final statement is error free.

People spend a lot of time adding income and expenses. The task becomes more difficult when calculating deductions and interests. Think about the time you spend adding numbers on paper or calculator. Utilizing a spreadsheet saves you time and energy. You are assured of filing financial statements on time and submission of accurate figures.




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