The end of the year is crunch time for business owners. As the year winds down, it’s the perfect opportunity to tie up any loose ends and get everything ready for tax season. By gathering the right documents and information now, you can make the filing process much smoother and set your business up for success. Here’s a quick guide on what your CPA will need to handle your taxes for the upcoming season.
1. Up-to-Date Financial Statements
Your CPA will need the big three: your income statement and balance sheet. These are crucial for assessing your business’s financial health and ensuring accurate tax filings. If you haven’t already, update these documents for the year and make sure all your income and expenses are recorded correctly.
2. Payroll Records
If you have employees, make sure your payroll records are complete and up to date. This includes wages paid, taxes withheld, benefits provided, and any bonuses or incentives given throughout the year. These records will help your CPA calculate your payroll tax obligations and ensure that you’re in compliance.
3. Documentation for Deductions
Now’s the time to gather documentation for any deductions you’re planning to claim. This could include receipts for business-related expenses like office supplies, travel, utilities, and even home office expenses if you work remotely. Be as thorough as possible—every eligible deduction could lower your tax bill.
4. Asset Purchases and Depreciation
If your business acquired new assets this year—whether it’s equipment, vehicles, or property—your CPA will need details on these purchases. Don’t forget to provide information on assets that are being depreciated over time, as your CPA will need to factor in depreciation for tax purposes.
5. Estimated Tax Payments
If you’ve made estimated tax payments throughout the year, provide your CPA with the dates and amounts of each payment. This information will ensure that any taxes already paid are properly credited, helping to avoid over- or underpayment issues.
6. Loan and Interest Statements
If your business has taken out loans, gather your loan statements and any documentation related to interest payments. Interest on business loans is typically tax-deductible, so it’s important to provide these details to your CPA for proper filing.
The key to a stress-free tax season is preparation. By providing your CPA with accurate, up-to-date information on your financials, payroll, and deductions, you’ll set yourself up for success. Don’t wait until the last minute—get organized now so your CPA can work their magic come tax season!