Of all the tax tips for retail business owners, the one that is most applicable is something Benjamin Franklin once said,

In this world nothing can be said to be certain, except death and taxes

As a retail business owner in the midst of your very busy holiday season,  you’re probably not thinking about January yet, let alone the April 15 tax deadline.

But with the new year looming, the reality is it’s time to start thinking about your taxes; yes, taxes.  It may seem far off, but a few advance preparations right now will go a long way toward being Tax Day ready.

Essential Tax Tips For Retail Business Owners

The end of the calendar year is an important time for businesses of all sizes. It’s not only the prime retail sales season but also when companies need to start finalizing or organizing the year’s financial information. With these tax tips, along with a trusted financial advisor, you can position your business for better economic success.

• Know The Law

You should have a thorough understanding of not only the tax laws but also of the laws and tax implications relating to your staff. And even if you use a service to prepare your taxes, it’s crucial that a business owner, you have a basic understanding of how taxes and the tax laws affect your business.

Many of the tax credits for small businesses that were set to expire, such as the Work Opportunity tax credit and the New Markets tax credit, were recently extended by Congress. If you’re not sure, check the Small Business Administration website, or if you have one, you tax advisor.

In short, knowledge allows you not only to make any necessary adjustments to how you operate your business but also gives you a jump on compiling any needed documentation.

• Get Your Documentation in Order
  

In reality, you should be keeping your records and documentation in order throughout the year.  And yes, December is a busy time for retailers; however even if you devote an hour a day now to getting things in order, it will pay off in the months to come. You should always ask for and save all receipts related to legitimate business expenses. To help keep track, use a separate company credit card where you charge all your business expenses. Then set up a regular schedule for tracking income, expenditures, and deductions. Automating this process is also a great way to make this task less daunting.

So if you aren’t  keeping records as you go, make doing this a priority business goal for 2016.

• Make Payments On Time

As a self-employed business owner, you must make estimated quarterly self-employment tax payments to the I.R.S. Payments are divided up into four times during the year and are due on April 15, June 15, September 15 and January 15. You should be paying one-quarter of your self-employment tax on each one of these dates. If you fail to do this, you will be fined underpayment penalties and interest. So the best advice is to schedule your payments and make them on time.

• Network With Other Small Business Owners

Taking the time to regularly network, either locally or online, with other small business owners will pay off in many ways. These groups are a good way to learn new business practices, bounce around ideas, and learn about changes to things like taxes.  Join your local chamber of commerce, as well as your state, regional, or national retail association. LinkedIn is an excellent way to network with people in your industry. Create a profile on LinkedIn, as well as for your business, and join groups related to what you do. Join a Facebook group that addresses issues that will keep you informed. For example, participating in an open forum Facebook group that discusses small business tax tips is an ideal way to stay current on what other owners are doing about their tax situations.

Investing time to learn about, organize, prepare, and plan ahead, are four important but easy tax tips for small retail business owners. With that in mind, another important Franklin quote comes to mind.

Never put off until tomorrow what you can do today