Get Prepared for Tax Season

Get Prepared for Tax Season‘Tis the season!  No, not that season, worse, it is almost tax season.  It is the right time to start gathering all your information together to get your taxes filed.  With the holiday season just behind you, the last thing you want on your mind are taxes, but you will thank yourself for being prepared when April rolls around.  Being prepared ahead of time can save you from the costly mistakes you can make when scrambling at the last minute.

While it might make sense to stay prepared throughout the year for tax season, very few people ever do.  If you’re one of those people who has just started thinking about getting your information together for your accountant, you’re not alone.

Here are five simple tips to get you started:

Get Yourself a Good Chartered Professional Accountant :  This should almost go without saying, but it is easier if you do this ahead of time.  This is the busiest time of year for tax preparers and if you wait until the last minute you might find yourself trying to do it yourself.  You have quite a few choices for tax preparers, depending on how much help you need.  Check with some other business owners for references.

Get the Paperwork Ready: While your personal return may not be submitted until April, businesses have different dates.  If you have employees they need their W-2 forms by February 1.  Here are some dates you should be aware of for tax season.  There will be paperwork from throughout the year you will need to gather for your accountant, so now is a good time to get started.

Payoff Any Outstanding IRS Balances:  Outstanding balances with the IRS can affect your ability to collect a return.  If you can’t take care of the whole balance at once then consider entering into a payment arrangement.  Check with your accountant to see what options are available to you.

Get Your Write-Offs Together:  For solopreneur and small business owners, having your write offs can reduce your tax debt.  Having them all together ahead of time makes it easier on your tax preparer to get your returns together.I have local Calgary Painting business and I use local CPA for preare my taxes.

Have a Meeting With Your Tax Preparer: Sit down with your accountant or tax preparer and make sure you have all your paperwork in order.  You want to make sure that no income was missed, nor any of your deductions.

Nobody enjoys tax season, but being prepared is half the battle.  Below is a video showing your all the information you will need to put together.