Tax season can be a stressful time for any business owner. Without assistance or prior knowledge, it can be difficult to navigate. Additionally, tax regulations change and keeping track of what’s owed, and deadlines, is essential.
Here are tips to prepare for the upcoming season:
Get records in order
Gather all necessary documentation/records in order to ensure you have everything you need and aren’t missing anything important. These can include: prior tax returns, bills, receipts, budgets, expenses, vendor tax forms, and payroll expenses, etc.
Complete your tax returns as soon as possible
You don’t want to be scrambling to find all documentation when the deadline for your tax returns is upon you. Additionally, the earlier you file your taxes the better your understanding of any financial obligations coming.
Seek accounting support
Accountants can ensure taxes are done correctly and on time. Be sure to hire an accountant with experience, great references, and good client reviews.
Accuracy is great preparation
Accurate records helps prepare you for any inquiries. Audits happen and can happen to any business. The more accurate your accounting, the less sstresful a potential audit can be.
Pay attention to the dates
Each year, confirm the important tax filing dates that you should know about. For 2021, here are a few key dates (this is a summary but confirm all deadlines with a tax professional):
- 1/15/21: Deadline to pay the fourth-quarter tax estimates
- 2/1/21: Deadline for employers to mail out W-2 forms to employees and 1099 forms to non-employees, etc.
- 3/15/21: Deadline for corporate tax returns for 2020 or to request extension
- 4/15/21: Deadline to file individual tax returns for 2020 or to request an extension, first quarter estimated tax payments due for 2021
- 6/15/21: Deadline for second quarter estimated tax payments due for 2021
- 9/15/21: Deadline for third quarter estimated tax payments due for 2021
- 10/15/21: Final extended deadline fore personal income taxes for 2020
Don’t wait for the stress to pile on and seek assistance if needed! Take action now and don’t save your taxes for the last minute.