Many businesses find themselves unprepared when a new tax season rolls around. Poor accountability during the year leaves many companies scrambling to pull together the proper documentation for filing. Inaccurate paperwork can be disastrous for companies, resulting in fines and the possibility of serious charges.
Hiring the services of an outsourced bookkeeper for tax season assistance alleviates many of these burdens. Even so, all companies should follow certain steps to ensure that all of their necessary information is in order when it comes time to file their taxes.
Start Getting Ready Early
Taking five minutes out of the day to log expenses. Make sure your bookkeeper gets any receipts for lunches or trips taken for business as soon as possible. Document any amounts spent on items like new software for computers, new equipment, and any other office exspenes that have been recorded. This makes it much easier to total up expenses at the end of the year.
Get Your Employee Info In Order
Make sure you have current information for any employees or contractors you paid throughout the year. Get current addresses for anyone who’s moved or who might no longer be employed at your company. You’ll want the most accurate information possible on any W-2s or 1099s you need to prepare.
Maximize All Deductions
This is where doing your due diligence in logging expenses during the year pays off. Your accountant should offer you advice on every deduction available to you. Be sure you’re taking into account any of the below actions your company might have taken:
• Charitable contributions
• End of the year bonuses given to employees
• The purchase of new office equipment
Don’t Leave Your Company Underprepared
Think about outsourcing your financials to the services of an outsourced bookkeeping firm to put your company on top. This type of tax season assistance makes it easier to prepare your taxes and relieve a lot of the stress of preparing tax filings.
For more information on how you can outsource your bookkeeping today click here for a quote!
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