Happy New Year!!!
With year-end behind us, the New Year upon us and tax season only a few months away it is time to think about planning and getting your things in order. There are things you can do to remove your stress and anxiety…so get your things in order now!
It’s not too soon to start organizing your records so that the preparation of your 2014 tax return is painless. Part of the income tax preparation process includes the goal of paying the “minimum legally calculated amount due”.
In order to accomplish that goal there are a few items you should consider.
1. Review your P & L statement with your accountant & bookkeeper. Note any unusual items and be sure explain them. Compare this year’s #s with last year’s and reconcile any major differences.
2. Organize your paid bills and receipts. The I R S may audit your tax return and the burden of proof is on you. Don’t procrastinate; it’s a lot easier to track the supporting data currently.
3. Talk to your accountant to see if you qualify for a home office deduction. There are 2 ways to calculate this deduction & you want to make the correct choice if you qualify.
4. If you use your car in your business the I R S permits you to deduct the expenses based on 2 methods, actual costs or standard mileage rate. You should consult with your accountant to see which method is preferable for you.
5. Be sure all necessary payroll tax returns, W-2s, 1099s , etc are prepared accurately and filed on a timely basis. Failure to do so can subject you to penalties and needless correspondence.
6. Be sure to reconcile your bank and credit card statements to your books. This is a good way to be sure you have reported everything that is required.
If you get your records organized now, it will save you time, money, anxiety and concern. Be sure to consult with a professional if you are uncertain how to proceed. Start today!