5 Ways to Prep for Tax Season
And just like that, tax season is right around the corner! We know what you’re thinking because the Printed Mint management team is thinking it too: “Wasn’t it just April 2 months ago?” Alas, it’s time to get with your trusty accountant and tackle those 2019 taxes like the boss you are — because you can totally handle it. Over the years, we have gotten stressed to the max over taxes and have finally such a refined process that we don’t even sweat it. Promise!
That’s why today we’re sharing 5 of our top ways to prepare for tax season. A good read no matter what time of year you come across this.
1. Go Through All Deductible Items
Hopefully you’ve been keeping track of all of your business deductible items throughout the past year. Now is the perfect time to sort through them all and make sure you’ve covered everything. After all, the less you owe, the better, right? Don’t forget tax write offs that business owners often forget: The phone you use for business communication, that lunch you paid for with your marketing strategist, the desk space in your home (check with your tax preparer to see how this works in your state), charitable contributions your company made, etc.
2. Gather Annual PayRoll Records
If you employ any people to help run your company, don’t forget to gather and review their annual payroll records. This is information that your accountant has had on file to send those handy W2’s, but always double check to avoid pesky fees that pop-up when you’re not on your A-game.
3. Find Last Year’s Tax Return
If you’re using a new accountant this year or were DIY’ing your biz taxes in 2019, you’ll want to locate last year’s return and hand them over to this year’s preparer. They’ll need this to input mandatory information and it will result in less back and forth emails or texts between the two of you. Talk about a productive move!
4. Review Numbers Quarterly
Reviewing numbers quarterly is a great idea for businesses that don’t want any big surprises come tax time! Sit down with your accounting team and evaluate numbers that might affect your company’s profit or signal towards a tax liability.
5. Know How to Classify Your Business
If you’ve been in business for a while, you likely know the answer off the top of your head to this one, but if you’re just starting out or have a majority of major paperwork handled for you, you might be unaware of all of the different business classifications that the IRS makes available. If you fall into the latter category, you can go ahead and read up on business structures, here.
Tell us: Are you prepared for tax season?