ways to prepare for tax season
I like to call this Pre Tax Season. It is the time when you should start tax planning, analyzing your finances, and planning ahead. My mission is always to stay ready so I don’t have to get ready. Take a look at what you can be doing to prep during Pre Tax Season.
Update your bookkeeping software
Make sure you’ve categorized all transactions, closed out open invoices and set up payments for vendor balances.
Review your averages to project the coming years budget
Review your goal income and projected expenses for Q4. Take your average and plan for future months.
Review your year-to-date profit/loss
Are you on track for a profit or loss? And for how much? Is this the story you want your finances to tell?
Strategically find last minute tax-deductions
Last minutes tax deductions are, but are not limited to upgrading equipment and electronics, giving employee bonuses, increasing your payroll, prepaying travel, subscriptions, and future bills.
Make sure you have a tax savings fund
Tax season can really set a person or business back if they aren’t prepared for the tax bill. Make sure you have some savings so that you can make the needed payment or at least make a minimum payment.
Gather all contractor information needed to prepare 1099s
You’ll need to collect information from your contractors to be able to prepare their 1099s and file them correctly.
There are many other ways to ensure that you are prepared for tax season, but the above will get you started on the foundational aspect of organizing your finances.
AP Elite can assist in this Pre Season — schedule a consultation TODAY!