January 18 2017
While there are some legitimate reasons to file a tax return extension, for most business owners, it doesn't make sense. If you're running your business properly, you'll be ready to make that date with your CPA before the New Year's confetti has been swept off the floor.
The business owners out there who have decided to hand over the reins of their accounting and bookkeeping, allowing them to focus on running their business, fall into that category.
Here are our top tips for small business owners to get ready for tax season:
Give your accountant or CPA every document you receive that's marked 'Important Tax Information Enclosed.'
Hand Over Your Books
Your accountant or CPA will need a complete copy of your bookkeeping file. If you're using a cloud-based software, this is easy to do. Your tax preparer needs access to your profit and loss statement, your balance sheet, your general ledger, and all of your year-end statements from your financial institutions and banks.
Submit Everything at Once
To make the process smooth for you and your accountant, wait until you have everything you need before you deliver it to their office.
Communicate with your CPA
Book your appointment early. If you have questions for your accountant or CPA, it's better to email than to call. And always answer emails and calls from your CPA promptly to avoid hold up in the filing of your return.
Get Ready for Next Year
If you found yourself more disorganized than you would have liked, learn from it and resolve to do better next year. Your CPA can assist you in setting up systems that will make next year easier.
Here's to a smooth tax season!
Do you panic when tax season rolls around? That may be a sign that you've grown your business to a point where you need to outsource your financial management. Business owners who have given over their back office functions to their outsourced CFO experience less stress when it comes to filing taxes. If you'd like to learn how an outsourced CFO can help you, contact us.
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