It’s that time of the year again. April spells hell month for taxpayers everywhere, especially for business owners who have to make sure everything in their books balance out. That can be tough to do, especially if you’ve haven’t got the slightest clue on how to make those tax returns come out right. If this keeps happening to you every year, it might be time to take a few tips to heart:
1. Gather all your income and expense information, Money Crashers suggests. Put everything in one place. That’ll make it easier for you to sort through everything later on.
2. Organize your data. Make sure you separate all your information into:
• Personal. This refers to your personal information.
• Income. This should cover any income you make whether you’re self-employed, have investments or retirement distributions.
• Personal expenses. Also known as deductions. This covers your business costs as well as entertainment or travel. You can easily download and print summaries of last year’s transactions then highlight the ones that might affect your tax filing. This will help you identify them later on.
• Business information.
3. Compare to tax filings of previous years. This can help you determine if you left out something or missed a few details when you set out to prepare your tax returns. It’s easier to spot a mistake by comparing it to previous records.
4. File early. There’s nothing like the early bird to beat the rest of the crowd. So if you don’t want the hassle of fighting your way to the tax office through the crowd, file early. This way, if data is lost, there’s still time to send the documents again and get your filing approved before the deadline hits.
5. Prepare for next year. The tax ordeal might have just ended. But it’s best to prepare in advance. That way, you’ll have an easier time at it next year. So start gathering the financial information you need as soon as you can.
6. Hire a pro. If you can’t seem to make heads or tails out of your tax resolution, time to call in an expert. With a tax professional, you can easily accomplish your tax filing and send it on time. And because you’ve got someone who understands how the system works, you won’t have to lose sleep that you might have filed it wrong or made a monumental mistake that could cost you a lot to repair.
So if you’re preparing your taxes and need some help, read through this list or ask a pro for help.
A Kaplan CPA offers tax preparation services to get you out of your tax filing woes. If you would like to know more about how we can help you get with your tax situation, call us for a FREE Tax Consultation at (718)577-2582. You can also follow them on Twitter for more updates.