Top Tax Tips from the Business Services & Solutions Team
Few times of the year can compete with the hustle and bustle that fills our offices during tax season. Our entire team is working to serve our clients as we always do, but with special attention to their tax needs ahead of this year’s tax filing deadline. Some of our Business Services and Solutions Team members (who collectively have years of experience regarding the tax needs of business owners) were nice enough to answer a question for me so I could in turn share their knowledge with you. The question I asked was:
What is the top tax tip you have to offer a business owner as we approach this year’s filing deadline?
Enjoy the responses below…
Keep your records updated during the year. When tax time rolls around it is not the time to try to organize the last 12 months, or decide you need our help getting caught up. Once you have things in order and you make an appointment with your accountant, don’t wait until we arrive on-site to begin looking for the documents we need to execute your return. Have your bank statements, etc. ready for us when we get there.Usually we have provided you with a list of items that we need many days ahead of our arrival so use that as your guide. If we aren’t meeting you on-site and you are sending the items to us, make sure you cover that entire list before you start sending items our way. Avoid sending a few at a time. We will need everything we have requested from you to take care of your financials and your returns. Without these items, a delay often takes place. – Linda Lehman, Senior Assistant Accountant
When inputting transactions into QuickBooks, be as detailed as possible in the description cell. This way you don’t have to remember every little activity that happened throughout the year. This is helpful to the business owner and also the accountant when reviewing the QuickBooks files at tax time. Clean up can be quicker or we may even get the answer to any questions that comes up based on a transaction, all because you took the time to explain what a transaction represents. – Julie Roe, Staff Accountant
Learn the basics of the bookkeeping software that you use so that you can run simple financial reports and do a quick sanity check a few times through the year. Your entries may not be going to the correct accounts or you may be duplicating something, and if caught early would make preparing your taxes much simpler. – Lynn Leitch, Senior Assistant Accountant
Remember, be proactive; not reactive. Think about tax planning throughout the year and consult your tax advisor before you do things like purchase equipment or go to a bank for financing. – Carmen George, Manager
Small businesses think they can’t afford an accountant over a bookkeeper, but the return on investment definitely outweighs the cost. It gives the owner more time to focus on the business and growth. It allows them to stay up to date on tax laws and compliance. We also help business owners reduce their tax bills in many cases as we help them avoid making expensive accounting mistakes. – Joee Brandfass, Senior Assistant Accountant
The top tax tip I have to share is- make sure your support documentation and QB files are organized. The more organized you are the less time we spend, resulting in less cost to you. –Lisa Decot, Client Relationship Manager
Looking for more advice or assistance with your taxes? Please contact us today. We would be happy to assist you.