If you’ve recently set up a business, you’ll probably go through a few teething pains with your startup. The chances are that you’ve spent the first few months trying to establish yourself, set up a larger plan of action, and making sure that you haven’t forgotten anything during the startup.

During your first year of business, you will likely encounter the need to do your taxes. This can be complicated, but getting it wrong can result in a fine or another sanction. So, here are a few tips to help you handle your taxes.

Do Your Research

Depending on where you live, you may have different tax laws and requirements to follow. Don’t make assumptions based on what you know from other sources, but do some research about your specific area. For example, in some countries, the tax year starts and ends at different times, and you don’t want to be caught out by this.

Another thing to research is specific terms that might apply to your employment situation, like “what is IR35”? This can change how you fill in your taxes.

You also need to think about your specific situation. While you might be used to doing your personal taxes, doing taxes as a self-employed person is different than when you’re employed, especially because you also have to fill in the taxes for your business.

Hire a Bookkeeper or Accountant

If you’re already confused, don’t worry. One of the best things you can do as a business owner is to hire a bookkeeper or an accountant to handle your bookkeeping for you. This makes it much easier to keep track of your earnings and to fill in your taxes more effectively.

You’re less likely to make mistakes because you’ve hired an expert in the field to make things much easier for you. This also means that you have a more accurate account of your finances, allowing you to make better financial decisions in the long run.

The right person to outsource these services to depends on your needs. A bookkeeper makes sure that you have more accurate financial information, while an accountant can use that information. So, if you want someone who can specifically help with your taxes, a tax accountant might be a better choice.

Be Organized

One of the best ways to make sure your taxes are always above-board is to be organized. When your business gains or loses money, make a note of exactly how much. Ideally, you want to keep a daily running total of your books.

You also want to be quick with your taxes. It might be tempting to leave it to the last minute, but this leads you more open to mistakes or being late when filing your taxes. Being late or failing to file can lead to a fine or other legal issues, so the sooner you get it sorted, the better. 

Even if you’re not an accountant, you can still keep on top of your taxes and not let them overwhelm you.