Tax Compliance Made Easy: Mac OS Tools for Small Businesses

Every country has laws which govern how businesses operate. Regardless of whether the venture is small or large, business owners need to follow the regulations. After all, the government uses taxes to fund its activities and provide essential services. Most importantly, they create a conducive business environment for everyone. But for a small business, the hustle of starting a new venture makes owners miss deadlines. Apart from this, some wait until they are into profit. Sadly, postponing compliance can mean serious trouble down the line. If the pressure of running a small business is making compliance difficult, read our list of Mac-friendly tools and software that offer respite below. 

Tax Regulations and Compliance Standards Relevant to Small Businesses

All countries have tax laws governing calculation, payment, and income reporting. However, the extent of complication varies between jurisdictions. Countries with large codes, like the United States, change legislation routinely. As a result, keeping up can be a hassle. Still, every taxpayer must fulfill their obligation, and ignorance is never an excuse. 

Due to the pressure of running a business, the best way to stay on top of the situation is to leverage technology and automation. One such is using Mac OS software. QuickBooks, TurboTax, and a host of other tools guide users through filing and simplify data organization. If you’re struggling with your Mac device, use self-service Apple fixes like CleanMyMac X to troubleshoot and solve the problem. Different laws come from various authorities, even within a country. For example, regulations from your municipality, state, host country, home country, and international laws.

Popular applicable laws to small businesses include value-added tax, income tax, excise tax, and more. Below are some regulations to note.

Income or Corporate Tax

Like individuals, businesses pay tax on their profits. Meanwhile, ventures registered as a corporation pay corporate ones. The amount is a percentage of profit, but the applicable regulation details how to calculate taxable profit. For instance, not all expenses are allowed as business expenses deductible from the income. Most regions require businesses to first register with a government authority. Then, the venture obtains a Tax Identification Number (TIN) or Employer Identification Number (EIN). 

Value Added and Payroll Taxes 

The VAT is another popular tax, one that applies to businesses selling goods or services. The VAT rates and rules vary between locations but often range between 0% and over 10%. In contrast, businesses that have employees must withhold and remit payroll taxes. This includes income tax and social security contributions. Employers file returns and provide employees with W-2 forms and other documents. Meanwhile, sole proprietors and partners pay self-employment tax in addition to any income requirements. 

Depreciation and Deductions 

Small businesses who own property, vehicles, and equipment account for the loss of value on them. Using this, they gradually write off the cost of the assets. In the same way, small ventures can deduct legitimate business expenses like rent and wages from taxable income. 

Advance Tax 

The advance or pay-as-you-earn tax is a type where the taxpayer pays his estimated liability in advance instead of at the end of the year. As the name implies, you don’t wait until the end of the year to settle your tax obligations. For a small business, you have to estimate your annual income based on the previous year’s income and pay the tax. However, there is room to make adjustments for expected changes. 

At the end of the year, the business will reconcile its actual income and tax liability with the advance payments made. If there is a shortfall, you need to pay the remaining amount. Similarly, the venture will be refunded the excess amount in case of an overpayment or apply it to next year’s tax liability. 

Tax-Filing Deadlines 

The tax filing deadline varies based on the type of business and the jurisdiction it operates. However, in most countries, the deadline is the end of the financial or fiscal year. The fiscal year-end is the timeframe a business calculates its income and expenditure for tax purposes. Hence, it may not be the usual January to December. In the United States, partnerships and sole proprietors follow the individual tax return deadline. In contrast, corporations use a separate deadline. 

In addition to the yearly tax return, the government may require small businesses to make quarterly estimated tax payments throughout the year. The amount is based on the estimated annual income. Above all, some jurisdictions allow businesses to request extensions for filing returns. 

Healthcare Insurance

Some countries or jurisdictions award tax deductions or benefits related to healthcare insurance to small businesses. However, it is often on the condition that the business pays health insurance to their employee. The expenses are tax deductible and reduce the taxable income at the end of the fiscal or financial year.

Some jurisdictions use the tax deductions as incentives for ventures to start paying their employees health insurance. Afterward, they report the cost of insurance coverage on the tax form to ensure compliance. 

Quarterly Estimated Taxes. 

Small businesses that are not subject to withholding tax pay quarterly estimated tax. The payments occur four times a year, often in April, June, September, and January the following year. In the United States, the IRS provides Form 1040-ES to calculate and pay quarterly estimated taxes. Nonetheless, it is always good to check the deadlines and specific rules that apply to your jurisdiction. 

Record keeping for Income, Expenditure, and Deductions

Record keeping is one of the most fundamental aspects of compliance. The proper records of the following ensure accurate reporting: 

• All sources of income, including sales, services, and all income streams. 
• Copies of sales receipts and invoices that clearly show the date of transaction, amount, and parties involved. 
• All business operating expenses, including rent, utilities, and supplies. In the same way, the supporting documents for each expense. 
• Records of all eligible deductions like travel expenses, asset depreciation, and office supplies. 
• Bank reconciliation statements to ensure accuracy and comprehensive statement of profit and loss balance sheets. 
• Detailed record of employee compensation, payroll tax filing, and documents related to employee benefits. 
• Copies of filed tax returns and supporting documents used to prepare it. They include income and expenditure records and receipts. 

Due to the sheer number of records a business has to keep, we recommend using accounting software to streamline the process. Most importantly, note the retention periods tax authorities give for the different types of records. For example, you may need to keep the records for 3 years after filing the tax return. 

Mac-friendly Tools and Software that Assist in Maintaining Tax Compliance

 

The Apple ecosystem has a reputation for simplifying processes. Mac devices have a sleek and high-quality build, and the operating system is renowned for its stability, reliability, and user-friendly interfaces. Other features like retina displays, continuity and handoff, and iCloud integration further make it a favorite among people. Use the following Mac-friendly tools to maintain compliance with ease:  

Mac Software	Function
QuickBooks	Bookkeeping, invoicing, financial reporting, and tracking expenses.
Xero	It integrates with third-party apps for invoicing, bank reconciliation, and expense tracking.
Wave Accounting:	Invoicing, accounting, and receipt scanning capabilities.
FreshBooks	Invoice and expense management and time tracking.
TurboTax	Guides users through the filing process and helps to take advantage of deductions and credits.
H&R Block	Supports various tax forms for businesses with different needs.
Expensify	Categorizes business expenses and simplifies receipt capturing and report generation.
Avalara	Automates sales calculation and filing.

 

Checklist for Small Businesses on Mac to Ensure Adherence to Tax Laws

Various laws apply to small ventures, each with its compliance requirement and due date. To reduce the confusion, use this checklist to adhere to the laws: 

• Confirm your business is registered and obtain a TIN or EIN. 
• List all applicable laws and the necessary forms and returns you need to file. 
• Use a Mac-compatible software that suits your needs. 
• Keep detailed records of income, expenses, and deductions for income tax. 
• Track and manage sales tax collection and remittance.
• Provide W-2 or equivalent for employees and ensure proper withholding and remittance of payroll taxes. 
• Pay quarterly taxes if applicable to cover income tax liabilities. 
• Identify deductions to minimize taxable income and keep an eye out for available credits. 
• Mark vital filing deadlines on your calendar and file reports on time. 
• Stay informed about law changes to ensure ongoing compliance. 

Conclusion 

Compliance is a major hurdle small business owners face. But thanks to technology, you can simplify the process and spend less time on it. Most importantly, meet deadlines with exceptional accuracy. Use the Mac tools above to save cost but don’t be shy to ask for professional help when such conditions arise. Most importantly, always monitor for regulatory changes to avoid being left behind and erring in the process.