Four Tips for Tax Preparation

Owning your own business can be a challenge, especially when it comes to managing the finances and the taxes. If you stay on top of your finances throughout the year and work closely with a professional accountant, you can sail through tax time smoothly. Here are four tips to help you manage your finances and prepare your taxes.  

1. Organize your records. During the year, you need to be sure that you are keeping thorough records for your business. You must keep track of all your income and your expenses to have an accurate tax return.

2. Separate your expenses. Be sure that you aren’t mixing business and personal expenses. Open a separate account for your business, and do not use that account for any personal purchases. Keep business expenses in your business account and vice versa.

3. Classify correctly. You may end up paying too much in taxes if your business isn’t properly classified. If you have questions about this, check with your accountant and an attorney for guidance.

4. Oversee payroll. You must stay on top of your payroll or hire a reliable company to support you. The IRS keeps an eye on payroll taxes, so you don’t want to miss anything.

If you follow these four tips and work with an experienced accountant like AMJ Bookkeeping, you will be in good shape for tax season. Are you still looking for a trustworthy accountant and bookkeeper? Call AMJ at 919-368-1877 today!

SOURCE

https://www.nationwide.com/lc/resources/small-business/articles/tips-for-small-business-taxes