Spring is upon us, and as we welcome in the warm weather, colorful flowers and longer days, we also must give our attention to tax time and Uncle Sam. As most people know, April 15 is the deadline for filing your taxes (personal and business). If you are a procrastinator, now would be a good time to get your 2013 finances in order. Good record keeping can help during tax time, especially when it comes time to hunt down receipts for business tax deductions.
If you have not done so already (hopefully you have by now), familiarize yourself with the new tax laws for 2013, such as Medicare taxes from the Affordable Care Act for high income earners. Those whose taxable income exceeds more than $400,000 may be taxed at a higher rate as well.
The rules have also change for small business owners who work from home, which now comprises about half of all sole proprietorships. It is now easier to claim your home office for tax deductions using the simplified home office deduction method.
Meet the Mid-April Filing Deadline by Using Invoice Factoring
The IRS does advise that if you are running late preparing your taxes, it is better and less costly to file for an extension than to let the deadline lapse and file late. Small businesses that owe on their taxes can work out a plan with the IRS to pay the money they owe with minimal penalties. Invoice factoring companies can provide factoring services so that businesses can get the money they need to meet their tax obligations.
Factoring Receivables May Cost Less Than Paying Late Filing Fees
A company can work with you to purchase your most recent, high-value invoices providing you with the cash you need to pay the IRS by the mid-April deadline or later. It is not uncommon for small business owners to underestimate how much they may have to pay the IRS. As such factoring companies are prepared to receive such requests at this time of year so that businesses can pay their taxes on time.