February signals it is time to prepare my business tax filing, here’s how I simplified my business tax filing.
Managing my professional organizing business, SolutionsForYou, Inc., an S-Corp, requires the tax filing is completed by March 15. I have my CPA prepare the tax filing, but she needs information from me to do that. Here’s how I simplified my business tax filing. All of my financial records are electronic. For that matter, my entire business is paperless. Here is the checklist of what I do to provide my CPA what she needs to prepare my tax filing:
- Reconcile all accounts in Quickbooks
- Run P&L report in Quickbooks for the fiscal year and do one last review that income and expenses are in the correct accounts
- Run Balance Sheet report in Quickbooks for the fiscal year
- Download bank statements for the fiscal year
- Download payroll reports for the year
- Create a copy of my Quickbooks
- Prepare a list of service providers that need form 1099 prepared
- Update last year’s Personal Property Report with any new assets and assets removed
- Upload the above to my CPA’s secure client portal
During the year, I scan all income and expense receipts and “attach” the scanned copy to the corresponding Quickbooks entry. If I am audited, I don’t need to hunt down the documentation because it is with each transaction in Quickbooks. I keep the scanned receipts in a tax folder on my computer for backup. I don’t download my bank statements or payroll reports during the year because it is easier to do that as one action versus twelve actions. If I need the statements for any reason during the year, I can access them online.
Taxes don’t have to be scary if you understand what your filing involves. Never be afraid to ask questions and get guidance from a professional accountant. And, once you’ve selected your accounting software, keep learning! Managing your professional organizing business’ finances will become easier as you continue to learn the small business accounting’s ins and outs.
One of the best ways to navigate your business’ accounting needs is with support and guidance from a SCORE mentor. Contact a SCORE mentor today and get your business on track for financial health and success.