Have you ever put off a task for long that you ended up having to do it the night before the deadline? That’s a terrible feeling and one that most procrastinators know all too well. It’s also a common feeling amongst business owners when tax season rolls around.
Filing your taxes the week before the deadline can be an incredibly anxiety-inducing experience. Fortunately, it is possible to relieve some of this stress before tax season rolls around. All you have to do is a little tax preparation.
Preparing for tax season ahead of time, and possibly even filing your taxes early, will help you avoid all the issues that come from putting off your taxes until the last moment. In the article below, you’ll find a few tips that can help you prepare your taxes ahead of time. Read on to ensure you’re ready when tax season does come around.
Find All of Your Income Sources
To prepare taxes ahead of tax season, you’ll have to gather some tax prep documents. The first step is to track down all your income sources to file your business income taxes.
For a business owner, that means establishing how much money you made from sales, how much you made on any interest from your business investments and accounts, and how much you made from any government tax credits. This is one of two very important categories of tax documentation you’ll need.
Establish Records for All of Your Business Expenses
When preparing for early tax filing, you’ll also have to find records for all your business expenses. Does your business require you or your employees to do a lot of travel? If so, you’ll need travel receipts or records to account for these expenses. Your office expenses count as well, including any internet services, phone services, and other related services.
Additionally, you’ll have to add up all of the wages you’ve paid to employees over the past tax year. These will probably be one of your biggest business expenses.
Employee expenses will also include anything you had to pay for your employee’s healthcare, dental care, or vision care. Once you have all the business expenses and income, you’ll be ready to use an online tax service like eFile360 to file your taxes.
Tax Preparation Is Easier Than You Think
The hardest part of tax preparation is tracking down all the right documents. Once you’ve got that part taken care of, it’s simply a matter of handing your tax information over to your online tax filing provider or accountant.
The earlier you start preparing your tax documents, the easier it will be to file your taxes quickly and efficiently once tax season comes back around. If you’re interested in learning more about business taxes and other tips for entrepreneurs, be sure to stay updated with all the new posts on this website.