It’s imperative that you prepare for the next tax filing season all year round.
Now, it’s time to turn your attention to this year’s personal and corporate tax returns.
Of course, proper tax planning will help you maximize the amount of money you’re able to save when it comes time to file, but there is another component as well. You and your tax preparer need to get on the same page and work together.
Only with careful planning and coordination will your tax preparer be able to save you as much money as possible when helping you file your tax return. So, here are five things you need to do to help your tax preparer out this tax season… and beyond!
1. Make Sure You Are as Organized as Possible
The worst thing you can do ahead of tax filing season is to throw all of your documents and receipts in a box and drop them off at your accountant’s office.
In many cases, this will cause your tax preparation bill to be higher. Worse yet, many tax preparers choose not to do these types of returns, so you could even be left scrambling for someone to handle your return. They will typically charge extra for bookkeeping tasks, and if there is too much bookkeeping involved, they will simply refer you to a bookkeeper.
Remember, you know what happened during the year better than your tax preparer does. Therefore, it’s wise to keep good records year-round and make sure that all of your documentation is organized before you bring it to your tax preparer’s office.
2. Meet With Your Tax Preparer Beforehand
Unless you have a straightforward tax return with minimal changes since the year prior, it’s almost always wise to meet with your tax preparer before filing.
During your meeting, be sure to go over all of your personal information, major life changes, a carryover from previous years, unusual transactions, and any other line items that might have tax implications.
Of course, it’s unrealistic to try and arrange a meeting a few days before the filing deadline. Instead, you should meet weeks in advance so that your tax preparer still has plenty of time to process the information, ask any follow-up questions, and complete your return.
3. Leave Your Personal and Corporate Returns With the Same Tax Preparer
If you’re filing a personal tax return and a corporate tax return, it’s almost always a good idea to leave both returns with one tax preparer.
The first reason for this is that one return is often dependent on the other. If you don’t keep them together, inconsistencies could cause you to end up paying too much or too little in taxes overall.
What’s more, keeping both of your tax returns with the same tax preparer will typically allow them to be completed much faster. It could even help you save money on your tax preparation bill!
4. Keep Good Accounting Records Year-Round
Simply put, if you don’t keep good accounting records, you’re probably paying too much in taxes.
To make matters worse, you could find yourself in trouble with the IRS, as they can easily recreate your income through reports and bank statements. They will even go as far as to create formulas that assess the reasonableness of the income you report.
Of course, it’s important to keep good records so that you report your income correctly; but it’s also important so that you can report your expenses correctly. Because the IRS will rarely comb through your expenses, the onus is on you to save tax dollars.
5. Don’t Leave Your Tax Return Until the Last Minute
Finally, and perhaps most importantly, never wait until the eleventh hour to hand all of your files over to your tax preparer.
At our firm, we don’t make many errors. Most of the “errors” we do make are the result of questions we didn’t think to ask, and almost all of these errors occur on returns filed within a week before the deadline.
Don’t put your tax preparer in a position where they are rushing to finish your return. If you want your tax return to receive the attention it needs so that you maximize tax savings, be sure to get it to your tax preparer early or file an extension.