With the holiday season quickly approaching, it's easy to become distracted and forget about the significant end-of-the year tax matters that are important to address. Taking steps today to plan for the 2016 tax season can end up saving a small business owner a lot of time, headache and perhaps even money.
While it may seem premature, April and the dreaded tax deadline will be here before you know it. It's a good idea, therefore, to contact one's accountant or tax preparer today schedule a time to meet and go over questions and any tax preparation issues. Waiting until the last minute to reach out for a financial professional's help could result in a business owner being forced to do his or her own taxes or to rely upon a less reputable tax preparer.
During these last months of 2015, business owners are advised to ensure that their financial records are organized and all transactions, accounted for. This may include going through and ensuring that all invoices and receipts are accounted for and entered into the books. Additionally, a business owner should take the time to ensure that all business-related transactions are reconciled in a business' accounting system.
For business owners that make "quarterly estimated tax payments," it's wise to review those payments and determine if they are match up with the actual tax amounts that a business will owe. Checking these figures now can help ensure that, come tax time, a business owner isn’t surprised by a hefty tax bill.
Source: Entrepreneur, "5 Year-End Tax Preparation Tips That Will Make Your Accountant Happy," Amrik Randhawa, Dec. 18, 2015