It’s every business owner’s favorite time of year—tax season! Business taxes were due back in March, and you might have found yourself in a slight panic (or a major panic) trying to gather everything you needed to file.
If you are like a lot of business owners, you wear multiple hats and juggle lots of priorities. Maybe you needed to file an extension on your taxes but you’re still running behind on getting all of your paperwork together.
Here are a few tips that will give you a starting point to sit down and tackle your taxes.
The first step in getting your taxes completed is to reconcile all bank and credit card accounts. The money that has left the account must match up to the money that you’ve tracked as having spent. Not only is it important to keep track of your spending for reconciliation purposes, but it’s also important when it comes time to claim deductions.
Deductions are a business owner’s best friend. That is why it is vital to keep track of all receipts during the year. If you used cash to purchase anything for business matters, you especially need to keep all your receipts, as it’s the only way to prove that you made the purchase.
As you receive 1099s, 1098s, or any other tax forms, be sure to file them in one consistent place so they’re easy to find when you’re ready to prepare your taxes. One great option is to scan all documents into an electronic file and label it accordingly. That saves you from having to gather everything in a last-minute frenzy. If you need tips on electronically filing important documents, check out our new online course.
Lastly, you might consider outsourcing your bookkeeping to help keep you on track in future years. As a business owner wearing many hats, it can really help to take bookkeeping off your plate and put it in the hands of a professional.
Contact us at Lionshare Bookkeeping to learn more about our bookkeeping services and how we can help your business flourish.