Steps for Simplifying the Tax Preparation for you Business
Tax preparation is on every business owners mind this time of year. Here are a few things you can do to make this easier for you and your accountant:
• Organize your invoices and receipts. Ideally, your business will have all of your invoices and receipts organized in a consistent manner. Go through them and double check that everything is in order.
• Reconcile your accounts. This is something that should be done every week, but it is especially important to do this before your taxes are completed. Basically, all reconciliation means is that you will match each receipt that you have to your records in the accounting system.
• Confirm your quarterly tax payments. If you have paid quarterly over the year, it is a good idea to check how much you paid versus what you estimate your payment should be given your year-end numbers. It will give you an idea of how much you may still owe or if there may be a refund coming your way when your accountant completes your tax preparation.
• Complete your W-9s. Everyone you have contracted to work for you will need a W-9 if you have paid them more than $600. This can be done throughout the year as contracts are created, but if not, now is a great time to complete them. This is required so that you can issue the contracted worker a 1099 form which allows them to complete their income taxes. Most contractors will take care of the 1099 as long as you send them a W-9 and the amount paid, but you’ll want to confirm that with the contractor.
• Set up an appointment with your accountant early. Accountants are very busy during the tax preparation season especially if they are good at what they do. Make sure you set up an appointment as soon as possible. In addition, this will give you a solid deadline to complete any loose ends in your books before handing them over to the accountant.
For more information on tax preparation, contact Artos Capital.