Meet with your bookkeeper. Making sure your books are correct is the most important thing you can do before tax season starts. The sooner you can meet with your bookkeeper, the sooner you can solve any potential errors that may exist in the books. Take the time to go through your financial statements with them. Feeling confident about the financial standing of your business will take some of the pressure off during the tax season.
Organize your bank statements. Start early by having these documents on-hand and organized. A tax preparer may request your statements to ensure that all of your business expenses and income are reflected properly in the bookkeeping. Being prepared beforehand will also save you time in the event that your books need to be altered.
Figure out which form is right for you. Knowing which tax forms are specific to your entity will help you know what type of information you will need to have handy for your tax preparer.
Here are some organizational resources:
Filling out these documents and having the associated documentation before meeting with your tax preparer will expedite the process. The process can be completed twice as fast if you sign up with KPMG Spark for their bookkeeping and tax preparation services.
Know the important deadlines. Knowing your tax deadline will help you know how much time you have before you get slapped with a penalty. Your deadline will depend on your entity type:
Original Due Date
Partnerships, S Corporations, and LLC’s
March 15, 2018
C Corporations and Individuals (Includes Single Member LLC or Sole Proprietorships)
April 17, 2018
May 15, 2018
You will also want to keep in mind the due date for employee W-2 and Contract Labor 1099’s: January 31st, 2018
Schedule an early appointment with your tax preparer. This single action will put you far ahead of most. Bring all your necessary documents to this meeting, including your financial statements. Your tax preparer should be able to tell you what information may be missing. When you return for your actual tax consultation you will be fully confident that you have all the necessary documentation. Try to schedule this appointment as soon as you can into the new year. This will give you more time to prepare and will allow you a better chance to meet with your tax advisor before they get sucked into the tax season.