Tax Preparation Bookkeeping Best Practices
As a business owner, it’s important that you have your accounting records up-to-date. This becomes even more essential during tax time. You’re required to file taxes and if you don’t have your data available, then tax season can become a big distraction for you from running your business. In today’s episode, Bernard Roesch explains how to avoid tax season becoming a mess by not having your accounting records available.
For more information, visit www.MissionBusinessPodcast.com.
If you have any questions about this podcast episode, please feel free to contact us.
Common Issues During Tax Time
There are two main problems that business owners face during tax time. First, not having their bookkeeping up-to-date means they do not have data available for a tax preparer to review. This leaves them frantically trying to get their records updated quickly. Second, business owners often have not reconciled or cleaned up their data even though they have done bookkeeping throughout the year. This leads to the same end result of not having the right data you need for a tax preparer. Make sure that you are keeping your records up-to-date and reconciling throughout the year so that you have that data available when tax season begins.
Specific Information a Tax Preparer Will Need
In addition to your bookkeeping records, a tax preparer may need additional information. For example, they may need W2s or other specific tax-related information. Second, it’s likely they will need some way to validate the bookkeeping records you’re providing. For example, they may ask for a bank statement or sales tax record that they can use to compare your bookkeeping records to. This gives them the ability to be confident the bookkeeping records you provided are accurate, which is important for their licensing requirements.
How To Prepare Your Records If You Are Behind
Meet with your tax preparer in October to plan before the end of the year. This enables you to have a rough idea of how tax season is going to go for your business. You can catch up on bookkeeping records before the end of the year. It’s important that you do not wait until the last minute to update your records. Otherwise, you may risk filing your taxes late.
Need Help Preparing For Tax Season?
As a business owner, you should not be focused on updating your accounting records yourself or scrambling to get it done. You have a business to run. If you need help updating your information or getting ready for tax season, contact Bernard today. He can help drive the process for you and remove the burden.