As a small business owner, you know how important it is to file your taxes properly. If you don’t, it can have large implications for your business. Not only is correctness important, but you also need to make sure you’re getting them filed on time and meeting the deadlines. This means that you have to be organized throughout the year. Propel Your Accounting is here to talk about the documents that you are going to need to file taxes for your small business properly.
Importance of Gathering Documents to File Small Business Taxes
If you gather documents throughout the year, you will find that it is far less stressful when it comes time to file taxes for your small business. It is overwhelming when you all of a sudden have to find all this information right before you reach the deadline. Having a good filing system in place can be a lifesaver. Whether you file for your small business using a Schedule C and your Form 1040 or file your business taxes and your personal taxes separately, you are going to need to have some documentation ready:
– Basic Tax Information: There is a lot of basic tax information that you’re going to need to file your taxes. Information like names, social security numbers, home and business addresses, as well as your employee identification number, is all going to be required to get the ball rolling. If you have been working with an accountant in previous years, they should have all of this information on hand. However, if you’re working with someone new, you will need to provide it.
– Income Records: Another important part of filing your taxes for your small business is going to involve having all your income records ready to go. You are going to need W-2s and 1099s ready to go. You will also need to have business financial statements ready as well. This will include an income statement, balance sheet, and cash flow statement. Also, if you have bought, sold or traded any cryptocurrency, you will need to have record of that as well.
– Financial Records: Not only are you going to need financial statements ready for taxes, but you will need more detailed records as well. This might include information about any new loans you have taken out, asset information, or deductible information.
– Deductions & Credits: Small business owners can also take advantage of deductions and credits that can help lower their tax bills. To take advantage of them, you are going to need documentation that might include mileage logs, education expenses, dependent expenses, and other itemized deductions.
Bookkeeping, Accounting, Business Consulting & HR / Admin Services in the United States of America
If you have a small business and are looking for someone that can help with bookkeeping and tax preparation, you can turn to Propel Your Accounting to give you that support. We will make sure you’re taking full advantage of all deductions and credits that can help you pay as few taxes as possible. Call us today!
