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(ARA) – Tax season is in high gear for individuals and business owners as the Internal Revenue Service's deadline for submitting taxes looms on the horizon. While tax time can be stressful for everyone, it can be even more daunting for those who own a small business.

Barbara Weltman, author of J.K. Lasser's "Small Business Taxes 2009" and tax expert on Bank of America's Small Business Online Community says, “It’s critical that small business owners have the right tools and know-how to properly manage their taxes year-round so they’re not dealing with undue stress in the days leading up to April 15th.”

Weltman offers some valuable tips and solutions to help small business owners efficiently and easily manage their business’s finances and taxes.

1. Investigate all the new tax breaks for 2008.
The government made several changes to tax regulations this year, and you might be able to save more money for your business and your employees. These changes include:

* A 50 percent bonus depreciation deduction and first-year expensing (up to $250,000) for the purchase of equipment.

* Higher write-off limits for business cars, vans and trucks purchased in 2008.

* An increase in the standard mileage rate for business driving of 50.5 cents per mile during the first half of the year and 58.5 cents per mile for the second half of the year.

* Increased limits for contributions to profit-sharing plans, Simplified Employee Pensions (SEPs), and to health savings accounts.

2. Take a home office deduction.
“Don’t avoid taking a home office deduction if you are entitled to it,” advises Weltman. In order to determine if you are entitled to take a home office deduction, Weltman suggests asking yourself two questions. “Do you use your space at home as your principal place of business or as the location for doing administrative work if you have no other fixed location?” asks Weltman. She also cautions that if you have another location -- an office in town or a storefront -- and use the home office for extra work, you may not be able to claim a home office deduction. “The second question you should ask yourself is if the space is used regularly and exclusively for business.” Weltman specifies that a spare room devoted as office space is fine but claiming the kitchen table won’t do.

3. Set up separate business and personal bank accounts.
Tax law requires all businesses to keep proper books and records, and having a separate bank account for your business makes this much simpler. “Make sure you’re working with a bank that understands your small business money management needs,” says Weltman.

Bank of America’s Business Fundamentals Package, for example, provides sole proprietors and start-ups with more control over fees and account activity. Business Fundamentals offers:

* No monthly maintenance fee on your checking account when you use your Check Card for purchases at least once every month.

* Bill pay made easy with free online bill pay.

* Guaranteed and protected Check Card transactions through Total Security Protection.

4. Don’t overlook deduction opportunities.
“Small business owners often do not think they can submit incidental expenses from a business trip, such as shipping materials, passport processing fees, dry cleaning or laundry costs,” says Weltman. “Tips for parking, meals and baggage porters as well as costs you paid in 2008 for 2007 tax preparation, including certified public accountant fees, software and books are other deductions that are often overlooked.”

5. Stay organized all year long.
Keep track of your business income and expenses all year long, so stress levels are not heightened as April 15th approaches. Try using accounting software or an online solution for your bookkeeping, and back-up your financial data to keep it safe.

For more tax tips, visit Bank of America's Small Business Online Community at www.smallbusinessonlinecommunity.com . You can also visit BankofAmerica.com to learn more about tools designed to help small business owners manage their business's finances.

Courtesy of ARAcontent