Death and Taxes
The United States has a rough history with taxes. Even so, taxes are as inevitable as death. Tax season can be an ugly mess. It’s one of the most stressful periods for small business owners. It can be a very time consuming process, especially if you don’t do it right. So, here’s a few things to have ready to make tax day run more smoothly.
1. Employee Payment Info
Make sure you have all of your W2 and I9 information ready to go. Employees that are subcontractors or vendors need to receive all of their payroll statements by the end of January at the latest. It’s a good idea to have a plan for the following year of how to get that information to your bookkeeper. It will save you a lot of time and headache.
2. Profit and Loss Statements
Look over your profit and loss statements for the previous year. Make sure all the categories listed coincide with your operational plan as well as your taxes. That way, you’ll be able to look up your profits and losses faster when it comes time to file your taxes.
3. Receipts and File Organization
We’re all familiar with the shoebox filing system – stick everything in a shoebox! This is not really an efficient system. Even if you spread the shoeboxes out by months, it becomes easy for things to get cluttered and lost. This kind of situation will lead to major problems if there are discrepancies in the bookkeeping, or if the IRS ever audits you. These days, digital technology makes storing and filing information much easier. Working with your bookkeeper as a digital assistant, you can set up a new system that keeps all your records in a convenient place that allows fast and easy look up if you ever need it.
Time, Money, and Sanity
You can’t get out of your taxes. There are plenty of horror stories of what happens to those who try. With proper planning and management, however, you can make tax day go much more smoothly. Good organization will help make sure you keep everything in order, so you won’t be faced with fines and fees for getting things wrong.
Dragon Financial can help you with this. Our digital assistants are ready to help you organize your system. We’ll save you time, money, and sanity; you’ll have no worries with us!