Tax Preparation Tips to File with Ease
Let’s face it, tax time isn’t usually the most enjoyable time of the year for business. Getting everything in order and filing all the necessary paperwork takes time and often includes frustration and confusion. Of course, if you have the right people in place and follow a proven system, you can eliminate many of the challenges that businesses face each year when it’s time to take care of tax preparation. Your company will be better for it, and you’ll breath a sigh of relief when taxes are due.
Don’t Put It Off
Filing taxes may not be first on your list of things to do at the end of the year, but this is one of the most crucial aspects of any business. Don’t wait until April 15 to get started. Your tax preparation should begin long before the due date. Also, if you use an outside account, you’ll want to schedule times to meet with this person well in advance. Even if you have an in-house professional, he or she will want to get things underway months in advance.
One of the worst things you can do as a business leader is go to your accountant with incomplete or missing records. Before you contact your financial professional, make sure you have all the paperwork and information you need to file. You want to make your accountant’s job as easy as possible. Whatever system of organization works well for you, use it for your tax preparation. Also, make sure your invoices and other records are in a uniform system rather than mixed up in different formats.
Focus on W9s
If you’re a small or medium-size business, you may use independent contractors to perform work for you. Anyone who made at least $600 during the year for you should receive a 1099 form so they can file their taxes. Your contractors will be waiting for this form, so don’t forget to send them. It will save you time and hassle.
Choose the Right Help
If you’re hiring an accountant or tax professional to assist with your tax preparation, make sure you choose someone with experience and skill filing taxes. Focus on accountants who are familiar with business taxes and all the laws and regulations that govern this practice.
You don’t want to get near the tax deadline unprepared. When you follow these guidelines, you’ll have an easier time getting all of your tax information squared away. This will help eliminate any stress and anxiety as tax day approaches.