Although it isn’t a national holiday, citizens and businesses around the United States know the importance of April 15th. The UCPAA gets a lot of attention, and accountants around the country find themselves busy sunup to sundown. To get your small business ready for the tax filing process, here are some things to keep in mind throughout the year.
Have the Money on Hand
Throughout the year, you should keep your tax liability in a reserve account. With proper tax planning, you will have a solid estimate of what your financial responsibility will be. This gives you all year to collect the funds to pay for it.
Stay in Contact With Your CPA
Don’t wait until the last minute to contact your CPA. As incomes and expenses change throughout the year, review your chart of account with your accountant to make sure the categories and listings are accurate. This can help with deductions during filing.
Develop Your Plan
If things go wrong with your business, you need to have contingencies in place to avoid tax liens or a lack of funds for filing responsibilities. Digital banking software can help your track the flow of money more quickly than simply waiting until the end of the year to find out where the money went.
Preparing for tax season is something that should happen all year. Being proactive makes it easier for both your business and your CPA.