The deadline to file taxes is quickly approaching, meaning time is running out to make sure your small business’ tax returns are accurate and ready to submit. Here are the top three things to check over when finalizing your business returns.
1. General business information
It seems simple, but always double-check that your business information, as well as your personal information pertaining to being a business owner, is accurate across all tax documents. This includes basic information such as names, spellings, addresses, Federal Employer Identification Number (EIN), and social security number. If any of this is inaccurate or not consistent, then the Internal Revenue Service may delay or reject your return, as your information must match what they already have on file.
2. Necessary documents
Filing taxes means compiling a lot of documents that are necessary for the submission of the returns. If you use an accountant, have them help you run financial reports, as they make the filing process easier and quicker. Otherwise, documents that you should have kept track of and will need for filing time include income reports, expense reports, payroll summaries, profit & loss statements, balance sheets, and more depending on your specific situation. Always keep a record of these documents even after submitting your small business tax return, as the IRS could conduct a tax audit several years after the initial filing.
Being the owner of a small business most likely makes you eligible for numerous tax deductions and credits; however, all documents relating to those deductions must be available as proof in order to qualify. Have all your deduction-related paperwork readily accessible to ensure that when it comes time to file, you won’t be scrambling to find receipts or bills needed to get the tax break you had been hoping for.
Is your small business ready to file taxes? If you have concerns that your small business may not be prepared for this year’s tax deadline, Emerald Financial Partners can help. Contact them today to talk with a tax expert who can guide you through the preparation and submission process.
Disclaimer: These are general guidelines, not set guidance or advice. Each business and personal situation is different and may require customized assistance based on their circumstances. Please consult Emerald Financial Partners about your specific needs.