Orange Crush

Don’t Panic At Tax Time! Here’s What To Do Instead

Tax season can be a stressful time for any business owner. Failing to file or pay taxes can lead to hefty penalties and fines, which is the last thing any business owner wants. 

Hiring an accountant can help alleviate the stress of tax season, but it’s important to come prepared. So you can get the most out of your accountant, we’ll go over the 5 things business owners need to get to their accountant for tax time.

Business Accounts

The first thing business owners need to bring to their accountant is a detailed record of their business accounts. This includes bank statements, credit card statements, payroll records, and any other financial statements related to the business. This information helps the accountant determine how much money the business made, how much was spent, and what expenses can be used as deductions on the tax return.

Receipts for Expenses

Keeping track of expenses is essential for any small business owner. However, it’s not enough to just keep a mental note of expenses, as receipts are needed to support any deductions. Business owners should collect and organize all their receipts, including receipts for supplies, rent, utilities, equipment, and travel expenses. These receipts are valuable for tracking expenses and reducing the tax bill.

Inventory Reports

If a business sells products, they need to provide an inventory report to their accountant. This report should show the beginning and ending inventory balances, as well as any purchases or sales made during the year. An accurate inventory report is essential for calculating the cost of goods sold (COGS), which is a key component of the tax return for businesses that sell products.

Payroll Information

If a business has employees, they need to provide their accountant with payroll information. This includes the total wages paid to each employee during the year, as well as taxes withheld and any contributions made to employee benefit plans. Payroll information is crucial for preparing forms such as W2s and 1099s, which need to be filed with the IRS.

Depreciation Schedules

Finally, business owners need to bring their depreciation schedules to their accountants. Depreciation is the process of spreading out the cost of an asset over its useful life, and it can provide valuable tax deductions for businesses. Depreciation schedules show the original cost of each asset, its useful life, and the amount of depreciation taken each year. This information helps the accountant accurately calculate depreciation deductions for the tax return.

Preparing for tax season can be overwhelming, but bringing the proper documents to your accountant can help take the stress out of the process. Business owners should bring their business accounts, receipts for expenses, inventory reports, payroll information, and depreciation schedules to their accountants. 

By coming prepared, business owners can help ensure that they receive every possible tax deduction and avoid any penalties or fines. Don’t wait until the last minute to start gathering your documents – start now and make tax season a breeze.

Ready to save at Tax Time?

Click the link and let us help you set your business up for success

Learn More
Top Categories
Business
Financial
Economic
Profit
Strategy