When it comes to filing taxes for your small business, all the forms, records, deductions, and legal jargon can be pretty overwhelming, especially on top of all your other responsibilities as a small business owner. How can you start to prepare now in order to make tax season less overwhelming?
1. Get Organized, now.
Assign a safe place for official documents as they arrive- a folder, file, self, or box can be very helpful to start the organization process. If you’re not sure what is important and what you will need, save it all. Keep similar documents together; create individual files folders or paper-clip all your cash charitable contributions, business expenses, etc. together and label them clearly. There is nothing worse than realizing you’ve lost important documents when you sit down to file.
2. Keep good records, now.
If your books aren’t in order now, get them there. Proper record-keeping year-round will help you to file accurately and will back up your deduction claims in case you are audited. When the tax season comes, you will be happy that you do not have a jumbled ledger added to the stress of filing. If you need help getting your books in order, contact us or sign up for one of our upcoming QuickBooks training seminars!
3. Start familiarizing yourself with available small business deductions, now.
Tax credits and deductions change every year; find out which ones you qualify for now so that you can gather the relevant documentation to support your deductions. Familiarize with which deductions small businesses can take. Don’t forget the tax provisions of the provisions of the Small Business Jobs Act of 2010; this act was signed in order to decrease the tax burden for small businesses.
4. Visit the IRS Small Business Tax Center, now.
The IRS has published lots of helpful articles and video webinars to ease the tax preparation process. Check out the Business Structures Page and click on your business type to find out exactly which forms you will have to file.
5. As you think of questions, write them down, now.
Keep a list of questions to ask your tax preparer and keep it with your official documents. This way, when you eventually sit down with them, you will ensure all your questions are answered.
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