After the holidays, there are only a few months to get ready for the tax season, which is why small business owners should take steps to prepare now. Tax return preparation for a business is different than filing for an individual, and getting everything in order early ensures your company can file on time. Here’s what you can do right now so that filing goes smoothly.

How Can I Ensure My Business Is Prepared for Tax Season?

1. Organize Documents

Get the correct tax forms for the type of small business you have. If it’s a sole proprietorship or standard LLC, you must attach a Schedule C to your personal tax form. On the other hand, corporations should file Form 1120.

Find the receipts for purchases you’ll be writing off, and go over your bookkeeping with your accountant to ensure every dollar is accounted for. If there are any inconsistencies in transactions, resolve the issue before filing.

2. Deduct What You Can

Deductions lower your tax burden, and several are available to small business owners. If you purchase supplies, such as computer equipment or office furniture, you can deduct all or a portion of the purchase price from your tax bill. You can also write off employee bonuses and charitable contributions associated with your business. The fewer taxes you pay, the more money you have to invest in your company.

3. Take Care of Independent Contractors

When it comes to tax return preparation for businesses, independent contractors are handled differently than full-time employees. Full-time employees receive a W-4, while independent contractors receive a W-9. You must also submit a 1099 for all independent contractors that you paid more than $600 this year.