Preparing Your 2017 Business Taxes
Tax season is upon us once again. It is the one thing in life that you can expect every year. For a business owner, this means it is time to get all your finances in order and sit down with your accountant. To make it much easier to file taxes, you should prepare before you ever get to the accountant. Here are some things that you need to do to prepare for your business taxes.
Think About Next Year
As you are working on this year’s business taxes, you should keep next year’s taxes in mind. Doing this will just make things so much easier on you when this time of year comes around again next year. This is a great time to confirm all employee information, double check your filing system, create any record system that you may be lacking and taking steps to plan ahead for deductions and credits. By making preparing for next year a part of your tax preparation routine, you will soon find that doing your taxes is a simple task.
Ensure Any Personal Information Is Separated From Business Information
While you should have separated business and personal finances when you started your business, if you didn’t now is the time to do it. You should take steps to remove any business transactions for personal accounts. Go over spending and expenses to ensure they are all business related and no personal expenses have snuck in. If you haven’t already, get a separate business bank account. If you are still using one account for business and personal use, then go through all records and note what is business and what is personal.
Look Over Accounts Receivables
You should aim to have all invoices due last year paid already. However, you may not be luckily enough to have had that happen. You should go through all invoices. Make sure that you have all invoices clearly marked whether they have been paid or not, and any overdue accounts should also be marked.
You should go over your inventory. Make sure you have a value for everything you have on hand. You should also note any damaged or otherwise unusable inventory so it can be taken as a deduction.
If you have receipts or other documentation that you will be using to calculate deductions, you need to get those things in order. Make sure that costs are highlighted and easy to find. Go through all receipts to organize them and ensure nothing is missing and nothing is included that shouldn’t be.
After doing all these different things, you should have a nice collection of organized information that you accountant can easily go through and use to do your business taxes. Just by getting organized and reviewing all your records, you can make tax time much easier to get through.