EIN - If you have employees for the first time this year, you should apply for an employer identification number. This number is how the IRS identifies your business both on your own tax forms and your employee’s tax returns.
Save receipts - Get a receipt for every purchase the business makes, no matter how small. Small expenses can add up to big deductions.
Separate business from personal expense - Pay for your business expenses with a credit card or bank account devoted solely to the business. Avoid using this account for personal expenses.
Organize - Set up a simple filing system for your receipts. File immediately or on a regular basis; this minimizes the risk of losing a receipt. When tax time comes, you will have all your documentation of expenses easily available, without having to search through a pile of paper.
Plan ahead - It's a good idea to set aside money from the business each month to cover taxes. Talk with your accountant to estimate your tax bill for the year based on income and expense projections.
Mark deadlines on a calendar - Just like any important date, you should keep track of any IRS deadlines you'll need to meet. Mark them on your calendar, along with any extra time you'll need to prepare.
Tax season is no fun, and likely never will be, but it doesn't have to be torturous. Outsourcing your accounting and payroll needs means you spend less time on paperwork and more time taking care of business. For more information about how we can help you prepare for next tax season, please contact us at firstname.lastname@example.org or call 1-844 MY ACCTG.
Simplicity Consulting is a professional accounting and administrative services firm run by a talented team of professionals. With a combined experience level of over 40 years, we provide high-quality, innovative services to small and medium sized businesses.