Tax Season is Near: Start Prepping Now!

We all might still be on a holiday high, but businesses should be beginning their year-end accounting and bookkeeping tasks, and with that thinking about the upcoming tax season.

Corporate taxes are one of those things, with a little preparation and planning, they won’t be nearly as bad as you’re imaging. By prepping early in the year, you’ll have a good handle on what you need to provide to your accountant to ensure your business is ready for April 15th!

The seasoned pros at Tally Services recommend you begin checking off items on this list as you plan ahead for tax season:

1. Gather Statements: It’s important to make sure your bank statements and balance sheets match to avoid audits. Start collecting your bank statements and balance sheets to use in the tax filing process.
2. Account for Commingling: Ideally you’ve avoided commingling altogether, but if you haven’t be sure to find all business expenses paid for with personal accounts, pay yourself back, and record each transaction so you’re not at risk for commingling penalties. 
3. Send and Receive 1099s: IRS 1099 forms are used to record if someone gave or paid you money. There are many different 1099 forms, but they all have a bearing on your business’s taxes. If you hired contractors or offered services, you likely need to include 1099s in your preparations. 
4. Consider your W-2s and 1099s: If your company employs other individuals or hires contractors, you will need to send out W-2 or 1099s forms to each to allow them to properly file their individual income tax. 
5. Note Mileage, Meals, and Other Expenses: Mileage, meals, and other business expenses can all help offset your taxes. By organizing your receipts and accounting for these purchases in your books, you can claim them to help reduce your tax liability. 
6. Ask for help! Tax preparation does not have to be stressful or nauseating. The experts at Tally Services will gladly help get your books, statements, 1099s, and W-2s in order for tax season.

Taxes don’t have to be one of the most hated parts of owning a business. We specialize in helping businesses prepare, document, and reconcile so your books are in great shape to file taxes. If you’re ready to take this year by storm, contact us! We can help you plan and work ahead to keep your tax season painless.

Tally Services in Fort Collins, Colorado has worked with businesses of all sizes complete year-end bookkeeping tasks and prepare for tax season. We would love to partner with your business to do the same.