Tax season is upon us, and you may be looking at the stack of tax forms on the corner of your desk with fear. Unfortunately, it is just so easy to wait, to put it off, to procrastinate.
But don’t! By following these four simple steps you can take control of the tax preparation process, reduce the time you spend on it and get back to running your business.
1. Don’t Procrastinate!
Taxes are due eventually, whether you like it or not. Waiting only makes the process more burdensome. We all know the longer we wait, the more difficult starting something becomes.
2. Gather Your Documents.
Before 2010 gets too far down the road, take a minute to accumulate your 2009 records into a central location. The records to keep include credit card bills and receipts, purchase agreements, tax correspondence, bank statements, etc. These don’t all have to go to your tax preparer right away, but if they are available in one spot, it sure makes things simpler for both of you if a question comes up later.
3. Clean Up Loose Ends.
Every business has those items at end of year that didn’t quite get finished. Spend some time completing them. Is this receivable going to be collected? How did I classify this purchase on the computer? How long was that Service Agreement for? Waiting any longer to wrap up loose ends can make the task more complicated and time-consuming.
4. Know Your Deadlines.
There are multiple types of tax reports due at this time of year including, employment, sales and use, and income taxes. Know when the different reports are due and get information to your tax preparer as soon as possible.
You and your tax preparer are very busy this time of year. By getting your information together and into the hands of your preparer as soon as possible, you help insure your tax materials will be timely and accurately filed. Another positive benefit of being proactive is your work for the past year is complete and all your energy, effort and attention can be focused on the future.