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Tips for Year-End Tax Preparation

Tax season can be very stressful to many people and business owners, but it doesn’t have to be that way.

How can you make your tax preparation for next year stress free?

Here are the top tips that will help you have a stress-free tax preparation:

1. Be proactive and start preparing or gathering your documents early

Get your documents and financials in order right away. You don't have to file immediately but if you gathered everything earlier, you will be more prepared, and you wouldn’t cram eventually. Get everything gathered and be equipped ahead of time so that you're prepared, and you will have the information necessary when filing.

2. Make a checklist and complete your bookkeeping as soon as possible

Having a year-end close checklist is a good way for you to close your books early, error free and makes it easy to wrap up the year. Such as Reconciling bank and credit card accounts, reviewing account receivables and payables, preparing accruals and prepaids schedules, etc. Hiring a professional accountant would be helpful here.

3. Round up your receipts

Collect them, gather them, and put them on file and if you need them down the road, you know you have back up support that is easy to find and you will know exactly where they are. Take a photo of them and put them on a digital folder. Gather bank statements and credit card statements as well. Do it monthly if possible because sometimes it is cumbersome to get old bank statements or bank statements of closed accounts. Take into consideration Loan documents and balances. Any loan documents should match the balances on your book.

3. Choose your tax preparer

If you have a business and/or your tax situation is complex hiring a skilled tax preparer is the best to accurately file your taxes on time. Even if your tax situation is straightforward, hiring a professional will save you the time and stress of doing your taxes. Leaf Point Solutions offers a free consultation, you may send an e-mail here to book a free consultation with us and it could be the start of a good and lasting relationship with a skilled, reliable and trusted tax preparer.

5. Preventing tax scam

With the tax season in full swing, it is important to be extra vigilant about how, and with whom, you share personal information to prevent tax fraud and identity theft. The IRS has a directory of verified tax preparers that may help you find a verified tax preparer in your area. While this doesn’t guarantee their trustworthiness, it’s a good place to start.

These are just some of the tips and reminders that we have for you when preparing for the year-end tax processing.

Failure to file on time or filing erroneous return can lead to your business being audited and penalties may be applied by the IRS or state department. If you need professional assistance of an experienced accounting team to help you with your year-end tax or any tax planning and preparation, you may schedule a consultation with us to get started on filing your taxes accurately and on time.

Contact us at p: (703) 582-1907 or info@leafpointsolutions.com.