How to prepare your business for tax season
With the April 15 personal tax deadline looming, businesses have until March 15 to file. Luckily, there are many ways to prepare to get you and your business ready for this tax season:
1. Send your own 1099s
If 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’s filing deadline was February 28.
(TIP: Streamline the process for next year by asking the people for whom you need to create 1099s to complete a W-9 now so you have that information ready in 12 months.)
2. Open a file named ‘Taxes’
By law, you’re supposed to receive all 1099s by January 31, but it’s not too unusual for some forms to come in a little later. Go ahead and label a file folder Taxes, so you’ll have an easy place to store 1099s as they come in.
3. Generate an interim P&L Statement
Get a sense of how much income you’ll be taxed on, as well as how much you spent on tax-eligible expenses like payroll, business travel, and office supplies, and by creating a Profit & Loss Statement for 2014 with your accounting software. Once you print out this statement, add it to your handy Taxes folder.
4. Got enough money to cover your tax bill?
Set aside the sufficient funds between now and filing time. If you can’t pay the full amount you owe in one payment, don’t sweat it – the IRS might be willing to work out a payment plan with you.
5. Make it easier on yourself
For incorporated businesses, taxes are more complicated so find a small business tax expert like Williams & Kunkel. We can give you the best guidance for deductions or income adjustments so that you may actually have a lower payment than you originally thought. We may also be able save you more on taxes than our fees would actually cost.
March is already here, so don’t procrastinate any longer! If you need to file personal taxes as well, make sure you are prepared (unless you are a sole proprietor). Get yourself organized and save yourself some effort by calling our Flower Mound office today on 972 446 1040.
Need more business advisory help? Read more at Williams & Kunkel, CPAs, LLP New Business Advisor Services