It’s getting to be that wonderful time of the year – Tax Time! Are there ways you can save time and money when filing your taxes? Absolutely!
Organization is the key to success. If you’ve scheduled an appointment with a tax professional, being prepared when you come to your appointment, having all your information with you, will save you time and money in the long run. Shuffling through papers and realizing you’ve left W2s at home while at your appointment prevents the tax preparer from completing your return.
As a business owner, reconciling bank statements, credit card statements and having your QuickBooks up to date are critical in finalizing your taxes for the upcoming year. Paxton Bookkeeping and Tax Services works with many small businesses throughout the year in preparing them for tax season.
With monthly financial reconciliations and regular reviews, business clients know where their tax obligations may stand. But more importantly, accurate financial information allows them to make sound business decisions throughout the year.
This is a short list of things to have with you when visiting your tax professional:
- W2’s or 1099’s
- Mileage for business
- Investment statements
- Capital gains for stock sales
- Interest for business loans
- Capital Equipment Expense for Depreciation
- Utility Costs
If you go to your appointment with a year’s worth of receipts stuffed into a shoe box or missing information, the tax preparer must wait to receive the remainder of the information needed to complete your tax return. Your return goes back into the pile of returns to be completed, you lose your spot in production, which will also delay your return. In addition, the preparer must reacquaint themselves with your file to plug in the one or two pieces of information that was missing. This equates to additional time spent by the tax preparer and perhaps additional costs incurred by the tax payer.
Although some taxpayers are anxious for a refund, be sure you don’t file too early and not have all your information. A missing W2 or stock investment statement can be cause for having to file an amendment to your return resulting in additional filing fees. Being prepared for the upcoming tax season will save time, speed up the tax return process and save money in the long run.