It may feel like the suggestion to begin thinking about tax filings is like seeing Christmas decorations in retail stores on Labor Day weekend, but this-is-not-that. Believe it or not, the last quarter of the year has already begun, so it is time to make sure your business financials are in order.
Although tax season is always a dread, you can make this next tax filing much smoother by following these easy steps.
1. Tidy Those Books
Most small business owners dread the thought of tracking down receipts, calculating expenses and revenues, and accurately reporting your business financials, but it is absolutely necessary. If you are like most business owners, and you avoid record keeping and sound accounting practices because it’s mind-numbing and life-draining, you have options.
Our experienced professionals at Elevation Finance actually enjoy the work of tidying your business’ books, reconciling financial accounts, and preparing all the statements your CPA and the IRS will need for your tax returns. You can eliminate these stresses and all the record keeping workload by reaching out to us for a free consultation.
2. Forecast those 4th Quarter Earnings
Not sure what the future holds? It’s o.k., our finance professionals are skilled at forecasting and reducing uncertainty. By working together, we can forecast what the remainder of the tax year will look like and summarize all this in a simplified report that you can hand to your tax professional. Supplied with these important data points, they will be able to provide you with a reasonable estimate of your total tax bill or refund will be.
3. Get Those W9’s
This step could easily be ranked number 1. Since the deadline to report W2 and 1099 earnings to the IRS is the last day of January, you do not have time to spare.
Every year our firm works diligently with clients helping them track down W9 information from contractors.
Don’t hesitate, start getting these now. If you’re looking for more streamlined support in this area, our professionals at Elevation Finance can help with gathering and reporting as well.
4. Complete Your Annual Meetings
If you are incorporated, including LLC’s, you must complete your annual corporate meetings.
Good CPA firms frequently coordinate with local lawyers and streamline this process for you. Often times, you can meet with the lawyer to complete those annual meeting requirements just prior to meeting with your CPA or tax professional for that fourth quarter review.
5. Estimate Your Taxes
Actually, if you followed all the steps above, this step is as easy as handing over the information already prepared for you, answering a few more tax related questions, and waiting for the estimated calculation.
Making your next tax season as painless as possible is our goal at Elevation Finance. By following the process above and relying on us to do the gritty accounting and forecasting for you, we can make it simple for you too.
BONUS TIP: Start a savings and estimated quarterly earnings reporting process. By doing so, you won’t fear visiting your CPA and filing tax returns early, because your preparation means you won’t be unpleasantly surprised by any potential tax bills.
