What you need to know about getting ready for 2014 business taxes.
When we think about the end of the year, we think of celebrations, new beginnings, goals and resolutions. One productive goal might be to set yourself up so that you are prepared for the seemingly daunting task of dealing with your business taxes. Now is a great time to start thinking about collecting your business tax information and to make sure that all your ducks are in a row as you head into the New Year. Here are some suggestions in order to help you prepare for the tax-filing season:
Tip #1: Recap last year
A great place to start organizing is with last year’s material. Look at how you organized information last year and make changes according to what worked and what could use improvement. Make sure to keep all your paperwork in one place, use folders, tabs, create a color system, or find a system of your own to keep you on track and all of your filing in a controlled, specified arrangement.
Tip #2: Utilize new technology
Staying up-to-date with current technology is probably nothing new for you, but finding ways to stay up-to-date with technology that benefits your taxes might be. Be ahead of the game by finding out if your favorite tax service provider has a mobile app. It is also extremely common to e-file tax returns online, as over 100 million taxpayers did last year. This may be worth looking into for someone always on the go, as it can be a faster way to organize taxes and is often quicker than filing a paper return to receive your refund check.
Tip #3: Make a list, check it twice
Create a list of things to do in order to make getting taxes done this year an easier experience. Talk with the person who helps you with your taxes and make sure you touch base and start dialog early so everything isn’t left for the very end. Set a target date with your tax preparer and stick to it. By periodically checking things off of your to do list, you not only see what’s ahead, but you will also stay on track, making your tax filing experience manageable.
Tip #4: Strategize business tax reductions
Research specific efforts you can take in order to reduce your taxes at the end of the year. This can include donating to a local charity, staying on top of your mortgage payments, or even taking matters into your own hands and finding out online or through others what you can do to reduce your taxable income. The information is out there, so take some time and see if there is anything you can be doing that you may not have known was available.
Tip #5: Take life changes into account
A lot happens over the course of a year. Address any new changes that you had over 2013 and how it could influence your tax return. If you’ve bought a new home, started a family, or took a new position with a different company, these are all things to consider when filing taxes as they could change the outcome of your tax return and even cause tax deductions.
Over the next few weeks, by taking these suggestions into consideration, you will set yourself up for a more organized, less stressful, successful tax-filing season! And who wouldn’t want that! How do you plan on preparing for the upcoming 2014 business taxes? What tips do you suggest?
If you are unsure of where to begin or how to handle the tax filing process, one of our strategic partners and team members, Steve Abrew of Cascade Business Support, offers business tax support services and would love to talk to you! Please feel free to contact us for more information.