Preparing to file taxes can be a year-long task, and many business owners feel the pressure to get everything filed appropriately and on time. Here are 3 things that you can do throughout the year to make the process go smoothly.
Monitor Your Financial Transactions Regularly
Even if you have an accounting department, if you are a business owner, it is important that you monitor and understand the financial side of your business as well. You should have a solid understanding of things such as your balance sheet, your income statement, and your statement of cash flow for starters. That way, there will be no big surprises when tax season hits.
Hire Someone to Help File Taxes
Sometimes, additional help is needed when it comes to filing taxes. Hiring tax management services Stockton CA can be a big help and can keep your company accounting team focused on their day-to-day work. Plus, a company that specializes in tax management will be extremely well-versed in any new or state-specific tax laws or compliances that need to be followed.
Understand Tax-Deductible Office Expenses
Understand and keep track of all office expenses throughout the year that could be tax deductible. This includes things such as office supplies, proof of retirement plan contributions for employees if applicable, and any work travel or mileage that you have racked up. Ensure that whoever is preparing your taxes has a complete list of all of these expenses so that you can get all of the deductions that you are eligible for.
Tax season is always stressful, but you can make it exponentially less so by preparing your business throughout the year. Ensure that you understand the inner workings of your accounting team and the finances of your company, and you will have no trouble when it’s time to pay.
Guide created by Mowery & Schoenfeld