Ready for tax season? Here are 4 steps to make tax filing easier in 2022
The first quarter of the year is typically when tax season preparation heats up for businesses. Yet now is the time to get paperwork organized with the goal of creating a return that is accurate and doesn’t hold any financial surprises for your company. Here are 4 tax prep steps and a few tips from the IRS you can take now to stay on top of the paperwork that can be overwhelming during the first part of the year.
- Get together with your accountant or bookkeeper or view your account online through the IRS.gov. This will give you the opportunity to get a handle on organizing your documentation. Get prepared by:
- Review the receivables, invoices, payroll, and expense tracking
- View the amounts of the Economic Impact Payments you received
- View key data from your most recent tax return and access additional records and transcripts
- View details of your payment plan if you have one
- View 5 years of payment history and any pending or scheduled payments
2. Gather and organize your tax information. You will make the tax process easier by getting your tax records together such as:
- Understand qualified deductions and credits such a wages vs. dividends, purchases of more substantial assets, or sales of assets. The IRS.gov puts out a comprehensive list of business tax credits.
- Itemize business expenses. Taking the time to have expenses detailed, itemized, and categorized is another way you can greatly save time and stress before tax day.
- Work closely with an outsourced client accounting services team will please your tax expert and put you in a position to claim the maximum benefit from your expenses.
3. Set up direct deposit to speed tax refunds. Eight out of 10 taxpayers get their refunds by using direct deposit, says the IRS. The fastest way to get a tax refund is to filing electronically and choosing direct deposit. Your tax accountant can help you set up direct deposit.
4. Consider succession planning. Prepare for the unexpected. Unexpected health crises and accidents happen. What would happen to your business if this happens to you or one of your partners? “Business owners should analyze and formulate a plan about what actions need to be taken to ensure the business continues. There are also tax benefits to succession planning, so check with both your attorney and accountant,” according to a recent article in Business News Daily.
“A savvy business owner knows that tax preparation is not just about checking off all the boxes and squeaking it out right up until the tax deadline,” says Jonathan Bello, Founder & CEO of One 8 Solutions. “With preparation and planning ahead, your business will be set up for success.”
If your company has any tax season preparation needs then schedule your initial complimentary Zoom consultation today