If you are preparing for your annual tax planning meeting as a small business owner, it can be easy to feel overwhelmed. However, if you prepare the appropriate items in advance, your experience will not only teach you about your own finances, but it will help you feel in control of them. Cheryl Hawkins Tax & Accounting has served the Jordan, Minnesota, area with sound financial advice and services for years.

Below, she has outlined the most important documents for  tax season: 

Income Records

If you haven’t filed your taxes on a quarterly basis, it’s of utmost importance to gather any documentation of your income. This includes any 1099-MISC documents, invoices, statements, credit card processing, or other credit card processing data you might have received from clients. By law, you are required to pay income, social security, and Medicare tax on any cash tips you receive. 

W-9 & Employee Withholdings

Have you hired any contractors or part-time workers in this tax year? If so, the government requires you to have on file a W-9 for each contractor or a W-4 and I-9 for each employee. In addition, pull together documentation of the amount of social security and Medicare taxes your business paid on their behalf. If you use a payroll service, they will have this documentation on file for you. 

Receipts for General Business Expenses

If you’re writing off business expenses on your taxes this year, plan on having the documentation and receipts for what you want to write off in order. Depending on your business, these expenses can include marketing efforts, lunch meetings, entertainment, or business gifts. Keep a mileage log for gas deductions, as well as any wear and tear on your automobile. The government also allows you to claim $5 per square foot for a home business office. 

Asset Documentation

Depreciation of assets required for your business can be a valuable deduction, as well as a way to recoup part of your initial investment. File original documentation, if possible, including the date of purchase or sale.  

Do you have a small business and need help with your taxes? If you have questions regarding tax preparation, or if you would like tips regarding which documents to prepare, Cheryl Hawkins Tax and Accounting is available to assist you. Call (952) 222-8272, or visit her website for more information.