4 Major Year End Tax Prep Tips

Do you feel those cooler temperatures in the air? Have you already decided where your family is going for Thanksgiving? Have you already thought about what would make an excellent Christmas gift for someone? That’s because the end of the year is coming!

However, don’t let all of that holiday bliss cloud your mind when it comes to your small business because the end of the fiscal tax year is also coming. End this quarter on a good note by being prepared upcoming tax deadlines.

End Of The Year Tax Prep

Get Organized

Now is a great time to get organized. By preparing all of your paperwork now, as far as invoices, expenses, charitable donations, and more you will thank yourself because you won’t be scrambling to find everything by your tax deadlines. Instead of keeping everything in a drawer or shoebox place your receipts in a folder or document them online.

Part of being organized is knowing what you will need to file. For example, for Form 941 you will need to report the taxes you withheld from each of your employee’s paychecks, so it will good to have payroll information on hand when you file. Also, if you need an EIN (Employee Identification Number), online signature PIN, or even a tax extension take care of it now.

Why wait? Go ahead and look up the forms you need to file now and see what information is required to complete them so you will be ready.

Provide Your Employees With Their Materials

As a business owner with traditional employees, you are required to provide each of your workers with a copy of their W-2. W-2 Forms report how much federal and state income taxes were withheld from their paychecks your employees will need that information to file their income tax returns. Why wait until the last minute when you can instantly handle this process with ExpressTaxfilings?

Don’t forget about your independent contractors. Even though they aren’t exactly traditional employees if you pay them $600 or more you have to report taxes for them and provide them with Form 1099-MISC. This form reports how much you paid an independent contractor so they can list your business as a source of their income.

List Your Deductions

The number one tax mistake made is paying more than you have to because you failed to claim deductions that would have helped you save money. For example, if you have a part of your home that’s exclusively used as your office you can claim that space as a deduction.

You can also claim business travel expenses such as the cost of gas or a plane ticket and lodging expenses. Plus, you can deduct charitable donations made in your business’s name. Just be sure that when claiming deductions that you meet the proper guidelines and have the correct documentation.