Tax Preparation Doesn’t Have to be Taxing!

by | Apr 23, 2015 | Accounting

Tax season is not usually much fun for small business owners. Just keeping up with the details of daily operations and planning for the future can keep your “busy meter” in the red zone. Save your tax specialist some time (and yourself some time AND money) by making it a priority to retain and organize the documentation required to support your next tax filing.

All of your business transactions, including purchases, payroll and sales, impact your tax liability and require documentation. Whether your checkbook acts as the main record of business or you use sophisticated accounting software, the documents that support the entries should be organized and filed so that they can be easily retrieved.

To get the jump on tax preparation, be diligent about maintaining the following documentation:

Gross Receipts (Income)
•  Cash register receipts and receipt books
•  Deposit information for cash and credit transactions
•  Invoices
•  Forms 1099-MISC

Purchases for Resale or as Material Used in Manufacturing Processes
•  Canceled checks and bank notices of electronic wire transfers-any document noting payee and amount paid
•  Cash register and charge receipts
•  Vendor invoices

Assets
•  Canceled checks and bank notices of electronic wire transfers-any document noting date of purchase and amount, along with details about how you acquired and used the asset
•  Date and costs associated with any improvements to the asset
•  Deductions taken for depreciation and losses by storm, fire or other
•  Sales invoices and receipts showing date of sale and amount-please note that expenses associated with the sale should be similarly documented
•  Closing statements for real estate transactions

Expenses
•  Canceled checks and bank notices of electronic wire transfers-any document noting payee, amount paid and expense details
•  Cash register and charge receipts
•  Petty cash slips
•  Vendor invoices
•  For travel and entertainment, mileage and other transportation-related expenses, and gifts, category-specific details must be substantiated. Consult your tax expert to ensure you collect the necessary documentation.

Employment and Other Tax Records
Consult your tax expert regarding your responsibilities associated with tax records for employees, both exempt and non-exempt, as well as other state and local tax liabilities.

Tax preparation does not have to be taxing if you prepare throughout the year. A little organization can take the last-minute scramble out of your company’s efforts toward tax preparation. Jacksonville, FL is home for several tax experts who can guide you through the year, as well as assist you with the actual filings.

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