Is Your Business Ready For Tax Day?
April 18th is the ever-dreaded tax day. Tax day doesn’t have to be as scary if you’ve kept your books in order throughout the whole year, but the question is have you done that for your business? If not, don’t worry! You always have this year to get things back in order. For your 2021 tax filing, however, you don’t want to have a huge tax bill from your CPA because they are cleaning up your books. There are ways you can clean up your books yourself before you even go to your CPA!
TIP #1 – Gather All You Business Expenses And Income from 2021
This tip may seem self-explanatory, but many tax filers don’t do it until after they’ve met with their CPA. Before you even get an appointment on the calendar to file your taxes, get your expenses and income in order. If you have a business account and credit card, this should be easy since you can export your statements there. If you have an accounting system that you track your income and expenses, such as Quickbooks, that will also be helpful.
If you fell behind on this year’s books, you have a couple of days of work ahead of you and that’s OK. If you don’t want to do the sorting yourself and would rather skip the expensive fees of a CPA, come to an accounting service like Select Accounting Services to resolve your issues at a much cheaper rate. If you don’t want to deal with your books in the coming years, Select Accounting can help with that too!
TIP #2 – Find the Right Certified Public Accountant (CPA)
As a business owner, you qualify for many tax deductions and you don’t want to miss out on any of them. If you go to a CPA who is not as well versed in small business owners’ tax deductions, you may miss out on money, or even worse, have your taxes filed incorrectly and the IRS may be knocking on your door.
Good CPAs are not hard to come by if you research your area, check reviews and social media. Asking around to other local business owners to see who they use is also an effective measure. Regardless of who you choose, any experienced CPA will take much delight in organized records to make their job easier. Most importantly, this will save you money excluding additional services you don’t want to pay for!
Tip #3 – Be Sure to Use ALL YOUR DEDUCTIONS
If this is your first time filing for your small business, you may not realize that all the expenses you had the entire year related to your business are a tax writeoff. Even things as small as the gas to go to appointments or your office, the wear and tear on your car, lunches with clients, office supplies, etc., all can all be written off! If you have a good CPA, they will give you good directions on what you can claim as a deduction. Don’t be afraid to ask them questions to ensure everything that can be written off is! They are there to help and informing you is their number one priority.
Trust a Professional With Your Books
These are our three top tips on how to be ready for tax season as a small business owner. If your business needs any accounting help in this current year, contact Select Accounting Services and we can see what we can do for you. We specialize in bookkeeping for small and medium-sized businesses. We would love to help you have organized books for all of 2022!