Tax season is upon us in the U.S. and entrepreneurs might be stressing out about it. Fortunately, there are some steps small business owners can take to make it less stressful.
If getting organized is a bit of a challenge, Enterprises TV shares some tips for getting everything in order before visiting a tax professional.
Collect the necessary documentation needed for the tax preparer. This includes bank statements, receipts, loan paperwork, and last year’s tax documents. If using an accounting software package, download and print what’s needed.
Always ask the tax preparer for a copy of the return. Entrepreneurs will need this for the next year’s tax return. It is also a good resource to gauge how businesses are doing.
Small business owners and entrepreneurs who employ regular, full-time workers, freelancers and contractors must have the appropriate tax documentation completed for each type of employee. Full-time staff should receive a W-2, freelancers and contractors are expected to get a 1099 form to file. Without these 2015 forms, they cannot file their own taxes, and the business’ tax return may not be accurate.
Enterprises TV recommends that entrepreneurs find and file all mileage logs for personal cars used for business. The IRS will expect to see it and expects people who run their own business to keep one. If claiming a tax break for a home office, the room where the office is must be used only for business.
Organization and preparation are paramount to a less stressful tax prep season. Get it all together now and spend less time searching for needed documentation, tax forms and other needed tax return items.