Year-End Tax Prep Steps You Can Take Now

Whether you’re a small business or freelancer, it’s important to start preparing for tax season early. At Edgewater CPA Group, we know that springtime can get pretty busy, so take some time now to make sure that you’re prepared and organized for what’s ahead as you file your 2019 taxes. 

Talk to your accountant

In this initial touchpoint discussion, you can discuss any changes that were made to small business tax laws or procedures in 2019, find out any additional documents you may need to provide, and review your books for the year. By taking this action now, you’ll have time to resolve any issues that come up before tax prep time arrives. 

Collect documentation

After your meeting with your accountant, you’ll have a list of all the documents you’ll need to have on hand for tax season. Depending on your business, these documents may include:

• Income statement
• Balance sheet
• Bank and credit card statements
• Payroll document
• Last year’s business tax return
• Partnership agreements
• Accounting document
• Asset purchase details
• Depreciation schedules

With all these details in hand, the process will go much smoother for you and your tax preparer. 

Ensure personal and business expenses are categorized appropriately

If you ever used your company credit card to cover a personal expense, make sure the information is noted in your records. On the flip side, if you’ve used your personal Amazon account to order supplies, make sure those expenses are included in your reports. 

Finalize mileage records

Although you are able to deduct mileage if you use your personal vehicle for business, you must track the miles driven and provide a record to your tax preparer. Before your tax appointment, make sure your vehicle usage log is updated and all trips have been properly classified. 

Schedule an appointment with an experienced tax preparer

Edgewater’s business tax services go beyond filing end-of-the-year taxes. We focus on working with businesses and individuals throughout Indiana and the U.S. to find the most tax-advantaged position. Call us today at (888) 317-4835 to schedule your consultation.

Source: Fundera.com