No one likes doing taxes. They’re confusing, time-consuming, and oftentimes frustrating. But, as a small business owner, it’s important to stay on top of your tax game. Luckily, we’re here to help. Read on for our top tips on how to get your taxes in order—before tax season even starts.
1. Find Out What You Need Before You Start Prepping
The first step in getting your taxes in order is figuring out what you need. Gather up last year’s tax return, any 1099s or W-2s you’ve received, receipts for business expenses, and anything else you think might be relevant. Sit down with your accountant or bookkeeper and find out exactly what documents and information they need from you. This way, you can be sure you’re not forgetting anything important. Once you have all of your materials, you can start organizing them into categories. This will make the actual prep process a lot easier and less overwhelming.
2. Give yourself at least 2 Weeks to Prep
Don’t wait until the last minute to start preparing your taxes. Set aside a few hours each week to work on them so that you don’t get overwhelmed come tax season. This will also give you time to track down any missing documents or information that you need.
3. Make a Home for everything
Once you have everything gathered and organized, it’s time to create a home for it all. Get a filing system set up—whether that’s physical files or digital folders—so that you can easily access everything come tax time.
4. Keep an Updated Checklist
As you’re going through your materials and organizing everything, keep a checklist of what you need and what you still need to find. This will help ensure that you don’t overlook anything come tax season.
5. Don’t Get Stuck on Questions
If you come across something during the prep process that you don’t understand, don’t sweat it! There are plenty of resources available—like the IRS website or a certified public accountant—that can help answer any questions you might have.
Prepping your taxes doesn’t have to be a nightmare. By following these simple tips, you can get your taxes in order before tax season even starts! And trust us, you’ll be glad you did come April 15th.