Updated: Oct 11, 2020
It's that time of year again...are you ready for your Income Tax appointment?
Tax time can be stressful for anyone, especially for a small business owner. A tax professional can help you when it's time to get your taxes done, but what about preparing for that special appointment?
There are piles of papers, receipts and probably a few notes in that pile too.
Here are a few tips to help you get organized and ready for tax time.
1. Gather all your business receipts in one place. Make sure that the papers you gather are related to the specific tax year only.
2. Sort all your papers/receipts by type. Think about what that receipt is for and then categorize best you can. Start separate piles for separate categories.
3. If you are not sure what category a receipt or paper goes in, ask your bookkeeper. Create a pile of receipts that you need help with and ask him/her to help categorize them for you. (Question: A gas receipt is easy, but do you know what category you would put a receipt for the paper shredder in? Answer: Depending on your Chart of Accounts, it could go into Office Equipment, Office Supplies or another heading your bookkeeper created. I would categorize a paper shredder under Office Equipment.)
4. Once all your paperwork/receipts are categorized correctly, clip them all together and put them neatly in an envelope and give them to your bookkeeper to enter into the accounting system.
Do you know what paperwork you need to bring? Click Here to get your FREE Income Tax Checklist. It should make tax time a little less stressful for you!