Every business owner knows that tax season is a very important part of the year. Tax filings are required by state and federal governments, and can play a very important role in planning the financial future of your company. As tax season gets closer, there are some things that business owners need to keep in mind that will help make filing taxes easier.
Keep Personal And Business Finances Separate
The payments you accept for your business should be put in a separate ledger than the payments you make on your personal bills. Always keep your personal and business finances separate to make it easier to file the correct information at tax time.
Keep Good Records
If you accept credit cards, then be sure that you have a service that allows you to create custom reports. Your merchant account will become a source of information for your income and sales tax filings, so be sure to keep good records of all transactions.
Keep Expense Receipts
A good business owner keeps receipts for every expense that he incurs. This includes creating a log for business travel so he can write off the miles. It is imperative that you keep your business expense receipts to offset your taxable income.
Review Your Records Thoroughly
It is common for entrepreneurs to simply turn over their records to their tax accountant at the end of the year and wait for the filing. But your tax filings are only as accurate as the records you give your accountant. Always check your tax records before submitting them to your accountant.
A Place For Everything
If you have tax records saved on your computer, then put them into a file that organizes them by year to keep them straight. Be sure to create a filing system that allows you to keep your paper records organized as well.
Have A Good Accountant
A reputable and experienced tax accountant can make filing taxes much easier.
Submit Information On Time
Make sure that you get your tax information to your accountant well ahead of the filing date to allow your accountant time to complete your taxes.
Make Information Clear
If you have any handwritten tax information, then make sure it is legible. It is always best to convert all of your tax data to digital format so it can be shared and read by easily by others.
All tax information that is submitted to an accountant should be complete and comprehensive.
Be Available For Questions
When tax season arrives, a business owner should always be available to his tax accountant to answer any and all questions.