Staying Prepared

Using an accounting application that keeps your records tidy throughout the year is vital for streamlining your tax preparations. It keeps relevant information at the forefront and keeps you as the business owner, in the know!

We know that staying on top of these tasks can be a challenge for small business owners. In this article, we share insight on how to prepare for your tax appointment as a small business owner.

How to prepare for your tax appointment

The first thing you should know is that our tax pros are here to take the burden of tax prep off your plate. Below we outline the information and documents to bring to your tax appointment. Here are some of the important categories:

1 – Personal and business identification documents

Bring identifying documentation to your tax appointment (i.e. your Social Security Card). Also bring your business Employer Identification Number (EIN), along with your driver’s license.

2 – Download your books

Bring your tax and financials records, like a copy of your prior-year tax return and information about your business assets, liabilities, and equity. In addition, bring your profit and loss statements and balance sheets if you have them.

Need a hand with bookkeeping?  Schedule a free bookkeeping consultation to see how we can help with your bookkeeping needs.

3 – Expense information

One of the best ways to reduce your taxes is finding every possible expense to reduce your tax obligation. Our Team can help to identify small business tax deductions you might have missed, but you can help by being prepared with proper documents and receipts. Go through your check register or credit card statements to identify possible tax-deductible expenses.

4 – Sales totals and cost of goods sold

If you buy or sell merchandise for business use, inform your tax preparer of these amounts.

The cost of goods sold is the cost of producing goods produced by your business, including the cost of labor and materials used.

5 – Income

Create an income statement to track all revenue sources of your small business. What goes on an income statement? This could include income from your day-to-day operations as well as any investment or secondary income.

6 – Contractor or employee information

If you have contractors or employees, this is important information to bring to your tax appointment.

Anything you paid to your contractor or employees for services rendered must be reported. This includes health insurance and other benefits.

In addition, your tax pro will need your federal and state payroll information (via Form 940 and Form 941).

Get organized and use a small business tax checklist

Preparing for your tax appointment is made easier with the right resources. Download our handy small business tax checklist so you have everything you need as you go to your small business tax appointment.

Stay on top of your financials throughout the year

If you’re questioning how to prepare taxes for a small business, here’s a little trick of the trade – enlist help!

Need a hand with bookkeeping?  Schedule a free bookkeeping consultation to see how we can help with your bookkeeping needs.  

Get help with your small business taxes

If you have questions about small business taxes or bookkeeping, we’re here to help!