April will be here before we know it, and that means it’s time to start thinking about filing taxes. We have a few tips to share to help ensure you are as prepared as possible to make tax time less stressful–and you might even be able to get them done early!
Tip #1: Catch Up on Your Books
In order to have an accurate tax return, you will want to make sure you have a complete record of all your transactions for the tax year. Automated bank and credit card feeds can make this easier, but if you have cash transactions or receipts lying around that your accountant doesn’t know about, be sure to get those pulled together so nothing is left out.
Tip #2: Make Year-End Changes
Some businesses may need additional year-end adjustments, and now is the time to make them. These could include items such as loan balances if the interest adjustment has not been booked every month, depreciation and amortization, accounts receivable write-offs, accrual vs. cash basis adjustments, and clean-up work. Have your accountant help you with these items.
Tip #3: Double-check Vendor Documentation
If you hire contractors and send them 1099s, make sure you have the proper onboarding documents such as a W-9 for these individuals. You may also want to have a workers compensation certificate from them in order to avoid paying it yourself.
Tip #4: Note Deadlines
Be sure you know when everything is due. Get clear on the deadlines for your corporate, franchise tax, individual and any other tax returns that are required. Even though you might hire someone to complete and file your return, you’ll want to make sure all deadlines have been met, as you are still responsible for timely filing.
Tip #5: Stay Organized for This Year and Next
As you receive your tax documents, keep them together in one place. Whether your preference is keeping digital copies or print copies (or both), figure out where and how you will store them and then file them according to your plan as soon as you receive them. If your tax accountant has a client portal, consider storing the documents there. They will soon need access to them anyway, so you’ll be ahead of the game.
And while you are at it, take a minute to prepare digital or print folders for the next tax year. You’ll be all set up come next April, and during this next year you’ll have a ready place to store any tax-related documents that come in as the year progresses.
Try these tips to reduce tax stress this winter and spring, and if you need assistance implementing any of the tips we mentioned for your business, SIMPLY Financials PLUS can help. We work with businesses on setting up best practice solutions utilizing QuickBooks and other available 3rd party applications. Contact us today at SIMPLY Financials PLUS to learn more about what we can do for your business to make your tax preparation go as smoothly as possible!