Dec 21

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How to Prepare Your Business for Tax Season | Melinda Emerson

Get Prepared for Business Tax Time – Stay Prepared All Year!

There are so many ways that you can get yourself organized with your business taxes. We want to help you relieve some stress. Jim Milucky, CPA may roll his eyes if you are not prepared, but only because he knows how he can help you become a better bookkeeper with some simple steps. This article by Melinda Emerson hits all the high points – do them! And then call Forensic Accounting Services, Inc. to get you better organized and add more life to your years!

Prepare Business Tax Season

Prepare Business Tax Season

The IRS gives us until April 15 to turn in personal tax information, however for businesses, March 15 is the date they are due to be filed. It’s time to get moving. If you want to make this year’s tax season easier, start getting organized. There are many things you can prepare ahead of time to get yourself, and your business ready to file and prepared for tax season.

1. Send Your Own 1099sIf you work with freelancers or other contractors that you paid $600 or more to in 2014, you need to file the 1099 IRS form. The deadline to get this form to your contractors was January 31, while the IRS doesn’t need it until February 28.If you’re scrambling to gather addresses and social security numbers for the people you need to create 1099s for, make it easier on yourself for next year and ask them to fill out a W-9 now so you have that information ready in 12 months.

2. Start a File FolderIf you’re a contractor and expect to receive 1099 or other tax forms from clients, started to trickle in this month. By law, you’re supposed to receive all 1099s by January 31, but it’s not uncommon for some of those to come in late.Label a file folder “taxes” so you have an easy place to store these forms as they come in. You’ll add to this folder in the coming weeks, so keep it accessible.

3. Print a Profit and Loss Statement from Last YearEven if you’re a couple of weeks away from filing your taxes, you can still get a sense for how much income you’ll be taxed on, as well as how much you spent on tax-eligible expenses like payroll, office supplies, and business travel.You should be able to create this report for 2014 from your accounting software. Once you print the statement, stick it in your tax folder.

4. Start Thinking About Your Payment PlanYou likely will have to pay something for your small business taxes, so consider whether you’ve got enough money in savings to do so. If not, get a plan to set aside a healthy chunk between now and when you file your taxes. If you can’t pay the full amount you owe in one payment, don’t sweat it. The IRS is willing to work out a payment plan with you.

5. Meet with a Tax ProfessionalFor incorporated businesses, taxes are a bit more complex, so it would be wise to find an expert in the field who has experience in small business taxes. They will be able to give you the best guidance for deductions or income adjustments so that you may actually have a lower payment than you originally thought. March is coming fast; so don’t procrastinate. If you need to file personal taxes as well, make sure you are prepared for that, unless you are a sole proprietor. Get yourself organized now and save yourself some grief!

Melinda F. Emerson, SmallBizLady is America’s #1 small business expert. She is an author, speaker and small business coach whose areas of expertise include small business start-up, business development and social media marketing. She writes a weekly column for the New York Times, publishes a resource blog,

Source: How to Prepare Your Business for Tax Season | Melinda Emerson

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