The taxation process can be daunting for even the most experienced business owner. Tax season can be incredibly daunting if you’re a small business owner.
That’s where we come in! Here are some tips from a tax professional on how to be organized with taxes:
- Get organized early. Start gathering your documentation and paperwork as early as possible in the year, so you have everything you need when tax season rolls around. This includes receipts, invoices, bank statements, etc. It’s best to have an accounting system, like Quickbooks, in place so that you can upload receipts and accurately track your sales and expenses. We work with small business owners to make sure that they are correctly reconciling their records so that oversites can be fixed as they happen instead of scrambling at the end of the year trying to figure out your records.
A few tips to stay organized include:
- Use a spreadsheet to organize your paperwork and records. This way, you can easily see trends and make corrections before submitting your return.
- Set up automatic alerts to remind you when important deadlines are approaching, such as the due date for your quarterly estimated tax payment or the extension for filing an extension of time to file your return.
- Get help from a professional tax preparer if you have difficulty managing your finances or filing taxes on your own. They can provide support in completing your returns and can answer any questions you have about tax laws and deductions.
- Have an accurate understanding of your income and expenses. Keep track of all your income and expenses on a regular basis to make sure you’re paying the right taxes and getting the right deductions. If you’re not sure, talk to your accountant to find out if you’re taking all of the deductions possible and taking advantage of the tax code that is in place. Many times, small business owners who try to do their taxes on their own, miss opportunities that can save them money in the long run.
- File your taxes electronically through a certified public accountant (CPA). Not only can we save you time, but also the hassle that can occur during tax season.
- Be prepared to answer questions from the IRS about your taxes or deductions. If you’ve made any mistakes, don’t hesitate to contact an accountant or the IRS for help resolving the issue. It’s important to take great records throughout the year.
- 5. Enjoy the process! Tax season doesn’t have to be stress filled, in fact, it can be a fun and exciting time if you’re prepared and organized.
To learn more on how you can stay on top of your taxes, contact us today!