Owning a small business means there are a lot of responsibilities that fall onto the shoulders of the owners. A small business owner's work is never done and there is a lot of paperwork that needs to be done to stay on top of things. The time to process the taxes for your small business can be stressful, but there are a number of things that you can do to get your taxes in order before you hire an accountant.
Sort All Your Receipts
Organizing your receipts by the type of expenses will help you to save time sorting at a later date. Take the time to group similar expenses together and then write in small writing the type of expense that they fall under. Group together transportation expenses such as gas and car repairs together, as well as any travel expenses. Operating expenses for things like website fees for domain and hosting fees can be claimed as well, and anything else that is related to the business.
Keep A Financial Diary
One of the best things that you can do is keep a record of all the income coming in and any money that is going out. Start a database that tracks the monthly transactions that the business incurs so that you can go back and reference exactly where the money is being spent. In the event that you get audited at a later date you can also use the financial diary and turn it into the accountant so they can go through each of the expenses line by line. This diary will also help you visually see where you are overspending and give you the ability to try and cut operating cuts without sacrificing the quality of the product.
Sit Down With A Professional Accountant
A professional accountant will be able to go over all your expenses and figure out exactly what types of tax breaks you will be entitled to. They can give you a financial overview to let you know what items are more likely to get audited or cause a red flag with the government. Having a professional accountant look over your taxes can prevent a major conflict that could cause an audit where the government comes after your business for back taxes.
Following the tips outlined above will help your small business get their tax documents in order and alleviate the stress that you feel having to do file the papers yourself. Contact an accountant like Jeff Baker & Associates, PS for more information.