Tax Time: How Small Business Owners Can Use A Virtual Assistant's Help

Tax season can be a stressful time for small business owners, but with proper planning and organization, it doesn't have to be.

A virtual assistant can be a valuable asset for small businesses in the process of preparing their taxes. With a wide range of skills, a virtual assistant can help streamline the tax preparation process and ensure that all necessary information is accurate and organized.

One of the primary ways a virtual assistant can assist with tax preparation is by helping to organize financial records. This can include tasks such as collecting and sorting receipts, invoices, and other documents related to business expenses. A virtual assistant can also help to input this information into accounting software, such as QuickBooks or Xero, to ensure that all data is accurate and up-to-date. 

Additionally, because small businesses can be organized differently, there can be some confusion about what forms are needed and how each individual business will be taxed.  A virtual assistant can help a small business owner determine their tax filing status and the forms they need to file. For example, a sole proprietor will file a Schedule C with their personal tax return, while a partnership will file a Form 1065.

Another way a virtual assistant can assist with tax preparation is by helping to calculate and track deductions. As a small business owner, it's important to claim all eligible deductions to minimize your tax liability. A virtual assistant can help with this by researching tax laws and regulations and working to identify deductions that may be applicable to your business. They can be on the lookout for deductions for things like home office expenses, business travel, and employee benefits.

In addition, a virtual assistant can also help with the preparation of tax forms, such as the 1040, 1065, and 1120. They can take over tasks such as gathering information, entering data, and reviewing forms for accuracy. A virtual assistant can also assist with filing these forms, whether electronically or through traditional mail.

A virtual assistant can also assist with the preparation of quarterly and annual tax estimates. These estimates are critical for ensuring that a small business is not hit with a large tax bill at the end of the year. A virtual assistant can help calculate estimated tax payments and ensure they are paid on time. 

Similarly, a virtual assistant can assist with the preparation of year-end tax documents, such as W-2s and 1099s. They can collect and organize employee and contractor information, prepare and distribute forms, and ensure compliance with state and federal regulations.  Because this can be time-consuming, a virtual assistant is well-equipped to set up systems to request these forms early and track when they are in hand.  This will prevent any last-minute scramble for forms and necessary documents. 

Finally, a virtual assistant can also assist with tax-related research and planning. This can include researching tax laws and regulations, identifying potential tax savings opportunities, and helping a small business owner develop a plan to minimize their tax liability. 

But if the thought of doing your taxes is simply too stressful - even with the help of a virtual assistant - a virtual assistant can help you hire the right tax professional to take on this daunting task each year.  They can research, recommend reputable experts in your area, and even schedule your appointments with them.  Your virtual assistant can be the go-between, aiding the communication and sending the necessary documents to the tax professional ahead of any appointments to streamline the process.

Remember: if you already have a virtual assistant working within your business structure, tax time is the perfect time to hand off additional tasks so you can focus on the necessary work that goes into filing each spring.  Because your virtual assistant already knows the ins and outs of your business, they can provide enhanced administrative support, which can free up your time and allow you to focus on the important tax-related tasks at hand.

By leveraging a virtual assistant’s expertise and administrative know-how, a small business owner can save time and resources and focus on growing their business - even during tax season!

To find out how a Freedom Maker virtual assistant can help you grow your business, click our get started link.  A member of our internal team can talk you through the process of outsourcing tasks to one of our talented military spouse virtual assistants! 

Click below to download our Small Business Tax Guide, chock full of checklists and dates-to-remember as you move through this tax season!