Are you hoping to help your business prepare for tax season?
Those that haven’t been in business for a long time run the risk of filing in an incorrect manner. Even those that have a lot of tax experience might make errors if they don’t prepare for it properly.
Making mistakes during tax season can prove disastrous for small businesses. The federal government might investigate you for tax fraud or impose expensive penalties.
Preparing for tax season can prevent you from having problems with the IRS. Below, we’ll get into some tips to help you prepare for tax season. Keep reading to learn more!
Gather Your Information Ahead of Time
To prepare for the tax season, you should make sure you have all your information organized and ready to go. Research what types of forms you’ll need to file.
Some businesses will need to file or provide different forms than others. For instance, non-profits will need to file 990 forms. Companies that employ people full-time may need to provide W-2s. Others will need to send their contractors 1099 forms.
Make sure you give yourself a month or two to gather all the correct information. Review the forms and then determine what types of information you’ll need to provide. If you have an accountant, ask them to pass along any crucial financial information to you.
It’s against the law to lie on your tax forms. As such, you should go over everything in a careful manner to make sure you’ve reported the truth.
In particular, you should ensure you haven’t reported any personal expenses as business expenses. Sometimes, these things can get difficult to separate. Here’s a rule of thumb: if you needed it for the business, it was a business expense. This includes furniture, office supplies, and bills.
Yet, you shouldn’t deduct items that are personal preferences and do not contribute to the business, even if you have them in your office.
Partner with an Accountant
When you prepare for tax season, you should partner with an accountant.
Accountants familiarize themselves with tax laws and can help you present your information in the correct manner. They can also answer any questions you may have about filing your taxes.
If you don’t have an accountant, you should hire one! You can do this by either going on the job hunt or working with an accounting agency. The money you spend on an accountant will prevent you from having to spend more on tax penalties.
Ready to Prepare for Tax Season?
Now that you’ve read this article, you’re ready to prepare for tax season.
It’s best to get started as soon as possible so you can avoid missing the deadlines. Still, you shouldn’t do it alone, as this increases your chances of making mistakes.
That’s where we come in. At Palmetto Payroll Solutions, we help you file your taxes! We’ll even remit payment for your taxes to the proper agencies.
Contact us today to learn more about what we can do for you!