How To Improve Your Approach to Tax Preparation
Many people groan at the thought of doing taxes, and completing them in December around the holiday bustle can seem even less appealing. But for business professionals, it’s another crucial part of business operations. Having your taxes done doesn’t have to be a headache, and with a little preparation, you can encourage the process to go even more smoothly. Here are a few things to keep in mind for your tax preparation.
If you haven’t already, find an excellent accountant that you trust. This can save you from a tangle of mistakes later on. Once you’ve found an individual or firm you’re happy working with, make sure you book your appointments ahead. The best accountants tend to have many clients, and you don’t need the added pressure of landing a decent appointment at the last minute.
Though it may seem like the most obvious tip, getting organized is one of the best techniques for speeding up the job. Having all your documents gathered and in the right order can help prevent mistakes and oversights as well. Don’t be afraid to crack open that drawer of receipts and wrangle them into some sort of order.
Many businesses make payments quarterly, and keeping track of those numbers can be useful when establishing a budget. You can even get an idea of what you’ll have to pay next by comparing your recent income to income in previous quarters.
Another fairly obvious tip for tax preparation, but one that can’t be overstated, is to reconcile your bank accounts. Though you may be encouraged to do this regularly anyway, it’s one task that can easily slip under the radar. Getting into this habit can make less work around tax time, but it’s also good for other times of the year, so you can get a realistic view of your finances.
Contractors can be a valuable resource, but make sure you’ve distributed and filled out all the right paperwork for them. Contractors need to fill out W9 forms, and you can give them out once you’ve selected your hires. With the W9 information, you need to send 1099 forms so that the contractors can accurately file their own taxes. If you’d like, many accountants will send out the 1099 forms so long as you give them the right information ahead of time, and delegating this task can save you the effort.
Though tax preparation can be confusing, the process can be streamlined with some thinking ahead. Having an organized system and an excellent accountant can make filing quick and worry-free.