Preparing your taxes is one of the most stressful aspects of owning your own business. Even if you don’t have many employees or a lot of capital investments, the constantly changing tax code and confusing regulations can cause you to make mistakes that might have serious consequences later on. While there’s no way around filing your taxes, getting everything ready for your accountant in advance can take some of the stress out of tax season.
4 Tax Prep Tips for Small Business Owners
1. Find a Tax Preparer
As deadlines loom and people rush to their CPA or tax prep office, most professionals will quickly get swamped. Even if they’re able to take on new clients, accountants won’t be able to give each client the in-depth attention you might need. The sooner you line up a qualified tax expert, the better.
2. Start Early
Begin gathering your documents as soon as you can, and make an appointment as soon as you’ve received all of your earning statements. Starting early will give you a chance to deal with any unexpected issues before the deadlines arrive.
3. Gather Your Revenue Documents
Forgetting to include income sources may result in potentially serious penalties later, so prepare a profit-and-loss statement and have your gross receipts ready. If you’re self-employed or an independent contractor, you’ll need to get all of your 1099s together.
4. Collect Your Receipts
Deductions will go a long way toward lowering your tax liability, but you have to have proof before you can write off a purchase. Collect receipts for all of your deductible expenses, including any you’re not sure about. Your accountant will help sort through and figure out what you can deduct and what you shouldn’t.
The expert team at A-Z Business Solutions have more than 25 years of experience providing a variety of financial and administrative services to companies throughout the Tampa Bay area and O’Fallon, MO. Whether you’re looking for an accountant to handle your day-to-day operations or help with your taxes, you can rely on them to take the financials off your hands so you can focus on running your business. Get more financial tips on Facebook now, and visit their website or call (855) 559-2665 to schedule a consultation.