It’s Tax Time – Are You Ready?

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Taxes-806396_1920It’s that time of year and if you’re like many this is probably an accurate description: your office is in some phase of disarray, you have papers and receipts scattered everywhere, file folders stacked precariously on one corner of your desk just waiting for the slightest breeze to topple them over. 

But you know where everything is right? You’d better hope so. 

As tax time approaches and your required yearly meeting with your accountant is getting closer and closer, now is the time to start getting yourself and your business organized. This scattered and disorganized system is not only a messy way to run your business it can prevent you from enjoying the massive tax benefits you’re entitled to on your return. 

There’s no time like the present to develop a system that will work for you. While not everyone is “into” being organized, the pros definitely outweigh the cons on this one. 

Here are a few tips to help you get and stay organized: 

  • Learn new tax laws and changes. Yes, technically it’s your accountant’s job to know the new tax laws and if or how they will apply to your business, but a smart business owner should at least know the basics.
  • Have a specific place to keep all of your receipts, bank statements and credit card statements and make sure everything is in its place. Take the time to make notes as to the purpose of your receipts and statements – you’ll find this step alone will make tax time that much easier.
  • Keep a balance sheet with all of your records and receipts documented. This can be as simple as a spreadsheet with tabs for accounts payable, receivable, inventory, assets and liabilities.
  • Make a list of any questions or concerns you have that only your accountant can address. 

Even a basic system will make your yearly visit to the accountant, and your tax return, a pleasant experience.