Doubtful of the information you need for the dreaded tax season? Well, you know tax element has never been so much fun, and, this time, don’t leave behind any critical information. You never know, turning a blind eye for a simple mistake can lead to delay in tax returns - and probably who wants that?
So, this time, you can lean on Affordable Accounting Solutions to streamline your taxation issues with an easy to follow checklist:
Fill The Correct Form
Whether you own a Sole Proprietorship business or single-member LLC, you have to report your business expenses and income on schedule C attached with the form 1040 for individual income tax returns.
Sometimes, it turns into an uphill task to decide which form is right for your business size. Don’t worry, entrust Affordable Accounting Solutions taxation experts to get the best and proper form filling in accordance with your trade.
Provide General Credentials
Whether you fill the tax at your own or have a tax specialist, there are no room for mistakes. You need to assure your credential right from your legal name, social security number, to your business address.
If you have an employer identification number (EIN), you need to provide it as well as your legitimate business name. Even if, your marital status is married or divorced, make sure the name on tax return matches with other valid credentials.
Be sure to double check the credentials while you are at it, else any typo mistake can result in delay.
Keep The Expenses Receipt Handy
Remember to keep your expenses receipt handy. The Internal Revenue System (IRS) requires proper documentation for the expenses related to your business. Bookkeeping and bank statement are not just enough. Undoubtedly, you don’t need to send them with your tax returns. But, should make it a habit to support your business expenses.
Prepare Your Documents
Keeping proper records throughout the year can make it pretty easier to prepare return during tax times. And, if you are aligned with professional accounting service, the very first question they ask you is for your bookkeeping records.
So, start keeping your account records organized and you don’t have to pay them by the hour to maintain your shoe boxes full of bills and receipts.
Keep Track Of Sale & Purchase During The Year
Finally, keep track of all the sold and purchased assets during the year. Inculcate the smallest furniture sold to the latest laptop bought for official use. To calculate depreciation expenses and gain or loss on any sale made, you will probably need the cost of the asset, the date it was placed in office and the date sold.
Foremost, Accounting System
Then copes foremost of all, implementing a proper accounting system and streamlining the smaller task in the right manner, requiring an effective micromanagement. From establishing a neat structure to deploying reliable and accounting software, ensure to check the number of boxes that you need.
Putting the lid on: Starting early and scrutinize things is the key to achieve any goal. Same applies for tax filing. For tips and any queries for filing the returns, you just need to call Affordable Accounting Solutions at 215-464-3100 and feel free to discuss your project with our taxation experts.