Entrepreneurs, preparing your business for tax season!March 24, 2017
Entrepreneurs, preparing your business for tax season!
As a business owner or entrepreneur, the success of your business relies on not only how your run your business, but what tools you use to run your business. Make this year easier on your Accountant and have your taxes prepared more quickly and easily, saving you time and money! Here’s a few tips to better prepare your business for tax season:
Tip #1: Keep ALL of your records together and organized
In order to ensure certain expenses are able to be recorded as an expense for your business, you should keep all invoices, receipts and statements to show the transaction flow for your purchases and sales.
Tip #2: Separate between personal and business
It’s much easier to hand your Accountant the files in a specified folder rather than all in one “Business Activity” folder. Keeping things for your business separate from your personal is highly recommended to avoid any discrepancies if questioned by tax authorities.
Tip #3: Stay up to date
Staying current with all of your tax filings (Sales Tax, Income Tax, Articles of Incorporation, etc) is highly recommended. This will avoid any interest or late charges, which can be quite costly depending on how far behind you are and how large the amount owing is.
Tip #4: Utilize technology
There’s various tools, software and smart phone applications that allow you to quickly copy, store and record all of your records. Ask your Accountant which software or applications are best suited for your business’ needs.
Tip #5: Consult a professional
If you don’t know if something can be included within your financial records or if it can be deducted for income tax purposes, consult a professional Accountant.