5 Ways to Prepare for Tax Season
It shouldn’t come as any surprise that tax season is quickly approaching. When it comes time to file, it’s extremely important to have clean books and an easy-to-understand financial statement. Ultimately, this will lower your preparation costs and give you a much clearer understanding of what you’re paying out while avoiding potential errors down the line.
But before you start thinking about handing over your QuickBooks® file or reports to your ProAdvisor, there are a few steps you can take to avoid errors, keep more of what you’ve earned and reduce the amount of work related to making changes and adjustments.
1. Gather all business-related receipts.
Taking the time to go through your receipts to look for potential deductions—such as charitable contributions and business expenses—can make a big difference in the amount of taxes you pay out. If you have a home office, include receipts for everything you spend toward your business—from new equipment and office furniture to bills and maintenance. In most cases, a deduction can be made. Going over receipts will also help you learn how close you are to a specific deduction so you can take advantage of it in the future.
2. Make a list of all income sources.
This is the perfect opportunity for you to think beyond your main employer. Consider any part-time or season jobs, investments and student loans. Before tax season approaches, all of these entities will be sending you tax paperwork to file. Making a list of these sources will help you know what paperwork to expect, what might be missing and if you’ll be receiving any late materials.
3. Invest in dependable tax software.
Before sitting down with your tax advisor, plan in advance by finding the right software for your needs—this will help you figure out what information you need to bring to your meeting with your advisor, and can potentially save you money in the long run. When it comes to choosing software, do your research! We recommend Intuit ProSeries.
4. Find a reliable tax advisor.
Take a moment to consider how difficult your taxes might be. An expert, such as a Beaton Accounting tax professional, can help you with everything from properly preparing your taxes to figuring out what deductions or credits you can qualify for. When it comes to feeling at ease about your taxes, Beaton Accounting is dedicated to being there for you and making tax season as stress-free as possible.
5. Create a better system for the future.
Now that you’ve gathered and researched everything you need for tax season, you’ve probably sorted out a few potential problems and targeted costly errors. Learn from them! If you were missing any information, think of a way you can better plan next year. It’s also a good idea to create a specific place to store important information as it arrives throughout the year so you’re not scrambling when it comes time to file! Take a moment now to understand exactly what you need and how a professional can help.
And remember, our experts can handle any and all of your tax concerns! For a FREE tax consultation, call today! (631) 921-6894.
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