As a wise man once said, the only things certain in life are death and taxes. With this alignment to death, it is no surprise that many fear tax season like they fear the reaper. But there is nothing to fear for the prepared when tax season comes around again. Follow these quick tips for a stress-free 2016 tax season for your business.
It’s Never Too Early to Prepare
- Organization is Key: We cannot stress this enough; make a file folder and make it now. Having all pertinent income and expense paperwork on-hand will prevent endless headaches when tax season begins.
- Know Your Forms: From the 1099-MISC and 1099-INT to the W-2 and W-3, all of the forms you may encounter can end up sounding something like a difficult algebraic problem. However, knowing and understanding these different forms, for both your company and its employees, is vital to ensuring your business remains in good standing with the IRS.
- Meet With a Pro: Especially in your early years of business ownership, take the time (and investment) to meet with a professional that understands the taxes your company will undertake, giving your company a much-needed foundation that can keep you from falling into hot water in following years. Meeting with a tax professional is often money well spent, given the complexities of conducting business.
Really, tax season should be treated like it is always upon your business. If you take the time to stay organized throughout the year, instead of cramming it all in just before the deadline, you and your company will be the better for it. With a little prep and practice, there is nothing to fear about tax season.