4 ways small business owners can help take the pain out of 2018 taxes.
1. Be best friends with your accountant year-round.
Your accountant is actually your business advisor. You don’t have a full-time finance person. You don’t have a CFO. So, they’re the ones advising you about your business financials and the growth of the company. If you’re not already talking to them on a weekly basis, talk to them at least once a month.
2. Streamline your financial data.
The best way to save money for taxes is by hooking up other business applications so you can get that data flowing into a cloud based accounting tool such as Xero. Then, work with your accountant or advisor throughout the entire year to help minimize your taxes, making sure that you have the right deductions all year long. So, by the time you get to the end of the year to file your taxes, it’s painless. It’s seamless.
3. Learn (some) accounting.
You don’t need to be a CPA, but any accounting knowledge you gain now can only benefit you. Ask your accountant questions, learn the ins and outs of your financial statements, and go through your tax forms.
4. Give yourself plenty of time in advance to organize.
Know your filing due dates, and work backwards. Allow time to gather all your documents, especially the paper receipts. Hiring a bookkeeper can also help you organize documents easier, and save you time.
For more helpful tips and resources on small business taxes, check out the related articles below.
PayPal and Xero do not provide tax, legal, or accounting advice. The contents of this site are provided for informational purposes only. You should always obtain independent, professional accounting, financial, and legal advice before making any business decision.
Frequently asked questions.
Pursuant to FATCA, PayPal also reviews existing account holder records to ensure that the account holder’s status (as a US Person or a non-US Person) is properly documented for FATCA purposes. In some cases, as a result of this review PayPal may request additional documentation from the account holder.
Situations where additional documentation may be required include:
- If data previously collected about an account holder does not match the information provided in an account holder’s tax documentation / self-certification  >
- If an account holder claims they are a non-US person but PayPal finds that US identifiers exist in the customer’s information.
A business entity can be required to provide:
- Its country of incorporation,  >
- Its business type or classification under FATCA,  >
- A certification stating, among other things, whether the entity is or is not considered a “Specified US Person” (as that term is defined by FATCA).  >
- Whether it has or does not have substantial US owners or controlling persons.  >
- If it does have substantial US owners or controlling persons, the names and addresses of those owners or persons.
Here’s how to provide PayPal with your FATCA information.
- Log in to your PayPal account.  >
- Click on the notifications icon.  >
- Click on the FATCA notification.  >
- Follow the instructions provided.
We’re required to report gross payments received by our customers who:
- Receive more than $20,000 in gross payment volume from sales of goods, services, or donations in a single year, AND  >
- Receive more than 200 payments for goods or services in the same year.
Here’s how to add your Tax Identification Number to your PayPal account:
- Click the Settings icon beside "Log Out.".  >
- Click Account owner information under "Profile" on the left of the page.  >
- Scroll down to “Tax ID number” and click Add SSN, Add EIN, or Add ITIN.  >
- Enter, and then re-enter your ID number.  >
- Click Add.
Tax information and FAQs
Agreements between the US and many foreign jurisdictions govern the exchange of account holder information to address local bank secrecy and privacy issues that may be impacted as a result of the FATCA's requirements. Information provided to the U.S. Internal Revenue Service ("IRS") or local regulatory agencies pursuant to FATCA are also covered by PayPal's Privacy Statement.