The time of the year when tax preparation heats up for businesses is here with us. There is a lot of paperwork to be organized to create accurate returns. The last thing you want is to get financial surprises from your company.
So what can you do to make the process smoother?
Organize your paperwork
If you’ve been in business for more than two years, then you probably know that a lot of reporting goes on in January. This is when many companies send and receive important tax documents.
Therefore, it is wise to have these documents ready. It will help you avoid the last-minute rush. Talking with your tax preparation professional will also help you put various documents in their respective categories.
Itemize business expenses
If you want to save time, money, and hassle before the tax day, itemize and categorize business expenses right now. If you have a large business, this is the time to work with your in-house bookkeeping team and even get outside help to do that. This will put you in a great position to claim maximum benefits from your expenses.
Update your payroll taxes
Apart from business expenses, it is also important to make sure your payroll taxes are up to date. Experts also advise the business to make sure the taxes are calculated throughout the year as part of the projected tax payment schedule.
Consider requesting for an extension
Just like filing individual tax returns, businesses can also request an extension from the IRS. Use the extension to clarify a tax issue to make sure you’re compliant with all the regulations. This can be extremely important if some of your customers are slower in providing the right paperwork.
While at it, keep in mind that extension only gives you a grace period to submit your final return and you must pay the taxes you owe.
Get help
One of the best ways to navigate the huge workload that comes with tax preparation is to work with a team of experts. So hesitate to get help as soon as possible.
At Abbo Tax CPA, we pride ourselves in helping businesses in San Diego meet their tax obligations on time. Contact us today to speak with one of our friendly tax experts.
