How to Master Your Business Tax Preparation

23 May 2022 How to Master Your Business Tax Preparation

Tax season is well underway. Time to take a deep breath, roll up those sleeves, and look back at payments you forgot you even made. As a business owner, it’s your job to find out if you’re owed anything or whether there are still dues and bills you need to pay. 

Master Business Tax Preparation With These Tips

As the age-old saying goes: there are few things inevitable in life. Unfortunately, tax is one of them.

Taxes can be straightforward if you know what you’re doing. We’ve put together a list of things small business owners should consider when sorting out their taxes, with or without a CPA. From new tools to old-school tips, we’re sure you’ll find something to help you along the way. 

For more guidance with income tax preparation, contact the tax experts at Haynie & Company. With locations in Dallas, Denver, Salt Lake City, and many more, we can connect you to qualified CPAs near you.

How do I prepare for my small business taxes?

During tax season, business owners prepare their financial documents from the previous year. Business tax returns can be hurdles – and there’s no getting around them. Preparation is key, and without it, last-minute panic often creeps in. Here’s how to avoid the common pitfalls of tax season.

Go digital

As we all know by now, the world is in a new digital age. Industries and practices have shifted to online territories and customers have followed. Businesses should start using the latest technology in receipt tracking and bookkeeping automation. The argument for ‘digital’ is there for all to see. With a helping hand from technology, we can access, send, and receive information in a fraction of the time. This trend spans everyday life – including bookkeeping and tax. Here’s how technology can help you with your taxes:

Real-time access

Technology puts the information you need right in front of you. With financial data at your fingertips, you can make instant business decisions. You can also assess how much you owe, and get a clearer idea of your spending, on the go.

Save valuable time

Sorting out your tax takes up valuable working hours and eats into your free time. With digital tools and software like QuickBooks, you no longer search for the correct documents or type out the data yourself. That means more time for you to spend on your business and yourself.

Budget better

It all comes down to paying the right amount on tax – no more, no less. That’s only possible with efficient budgeting. With the correct technology, you can see things like cash flow and get a firmer grip on your business admin. There are a host of software tools out there that make this possible. Learn more about the Advanced Bookkeeping System (ABS) Haynie & Company offers. 

Technology is a great starting point. It brings everything in line and introduces order to what can be a messy process. It also provides a platform from which you can tackle business admin and, in this case, tax. 

Aside from the lure of digital, there are other things to consider when sorting out your small business tax preparation.

Shift to Year-Round Management   

A step in the right direction is the year-round approach. Many businesses deploy a ‘once-a-year’ strategy which requires a lot of work to be completed in a short space of time. With a year-round strategy, you and your tax accountants stay on top of your business admin throughout the year. That also allows you to track performance and budget and forecast better. 

If you’re waiting until January to assess the state of your books, this only limits your planning window. With a year-round approach, you can adapt your business model based on events when they happen. Your tax return isn’t something you can afford to rush, so it’s important you do your best to organize early!

Communicate with your tax accountant

Lean on the experts wherever you can. Ask your CPA for advice on anything you’re unsure about. Tax season is where accountants and bookkeepers come into their own – so do your best to stay in touch with us. The Haynie & Company Client Portal makes communicating with us easy. Use it to exchange tax information, upload documents, collect signatures, and track progress. The Portal also includes an App for scanning and uploading documents.

Don’t panic 

The most important rule for tax season is not to panic. With small business tax preparation, there will always be underlying stress and it may feel like an inconvenience. The sooner you prepare your taxes and utilize the tools and resources available, the more likely you are to sail through unscathed.

Of course, tax season and general business admin, are far easier with the support of technology. When you automate, you save time, you budget better, and you get a much clearer picture of where your business is at. It’s now up to you to make all that happen. 

Why not give your business the head start it needs when it comes to tax? We can help organize business admin. Our small business CPAs extract the information you need from receipts, bills, bank statements, and more. New technology can put tax-ready data in your hands. Explore Haynie & Company’s Accounting Advisory Services. 

Contact the tax accountants at Haynie & Company CPA firm for professional income tax preparation