Preparing For Business Taxes

Preparing For Business Taxes

Tax season is scary for everyone. You have to rush to prepare the books sometimes, especially when you have new things to add to the forms. Sometimes you need to take care of your assets by assessing how much you have. Sometimes you have to make lots of charitable donations to write off the rest of the leftover funds. No matter what the reason, this is a tough season for most people and businesses.

Get a jump on it by preparing business taxes now to have a better, milder season. Here are some ways that you can take the stress off of tax season and prepare your forms.

Tip # 1 – Less Stress For Everyone

Take the stress off of everyone this tax season with these methods. First, do not assign any extra work to those dealing with taxes. Just like Christmas, this is a trying time for many people in the business world. Take the load off by cutting down the projects and other jobs. Odd jobs can be done at a later date.

Something else that helps is to hold employee workshops about taxes. Help them fill out their personal forms. And train new accountants well so that they know what they are doing enough to not feel too overwhelmed. Keep a lookout for struggling employees and make sure that people get time off if they are sick, even in the midst of the impending April due date.

Tip # 2 – Use Your Return From Last Year

It all starts with using last year’s tax return. This makes it much easier to fill out this year’s taxes. If you are filing online, you can pay a little bit extra to use the same information that is already saved in the system from the last time you filed. This means less time for you or for your employees doing mindless, numbing work over the books. But you do need to make sure that the books are balanced no matter what. This will give you an idea, however, how this year’s taxes should look.

Tip # 3 – Know Your ID Number And Classification

As an employer, you have a special ID number that you need to use on your taxes, as well as an NAICS classification. Without these things, you cannot fill out your taxes or turn them in. So file these things if you are a new business owner. It will make things easier later on. When you get the little things out of the way beforehand you can focus on the more important things later.

One couple filed their taxes honestly and did everything they should do, just to have them returned. They were told that their ID number was already in the system that year. Someone else had actually used his or her ID. You can steal or accidentally use someone else’s ID or social security number while filing taxes. It makes everything confusing when you do.

So be careful to get and keep your own. You should keep on file somewhere the passwords and IDs to your company and personal life. Make sure that they are kept somewhere safe, like in a safety deposit box. And do not put them where you might lose them. This has happened to many people and it is hard to deal with the consequences of doing it.

Tip # 4 – Keep Accurate Records

Make sure to have your books kept up and your records all ready to file. And if you ever get audited you should be prepared. The IRS expects you to keep your receipts and invoices for 4 to 7 years in your personal life, so you should definitely do it in business.

Tip # 5 – Hire Help

Let’s face it, taxes are complicated! If you are in over your head, its time to enlist the help of a professional. While a lot of people can do their own taxes online, hiring a CPA and sitting in their office can make a large difference in your ability to properly prepare and file your taxes. The last thing you want is the IRS auditing you for improperly preparing your taxes.