It's that time of year again: tax season. Don't wait until the last minute to file your practice finances. Here are tips on getting started — what you need, where to get answers and how to hire an accountant if you haven't already.
Posted in Planning on Tuesday, February 22, 2022
Tax season has arrived, and it doesn’t have to feel overwhelming. If you’ve been putting off filing, a few simple steps can help you get back on track. With tax codes constantly changing, it can be very stressful knowing the proper way to file taxes and who you owe taxes to.
Should You Hire an Accountant?
If you aren’t already working with an outside accountant, now is the time to consider doing so. Many small business owners believe they can save money by doing their taxes themselves. Often, they leave money on the table because they didn’t truly understand the tax code.
Here are the 3 reasons why small businesses should consider hiring an accountant.
Avoid Costly Mistakes
Tax rules can be confusing, and small errors can lead to penalties or missed deductions. An accountant helps make sure everything is filed correctly and on time.
Save Time During Your Busiest Seasons
Preparing taxes takes time which can take time away from caring for patients or growing your business. An accountant takes that off your plate.
Keep More of What You Earn
A good accountant looks for deductions and tax-saving opportunities you might overlook, helping your business reduce its tax bill and plan ahead.
Preparing for Your Filing Appointment
To prepare for your annual tax filing, it’s important to have the proper paperwork easily accessible.
Here are the 5 documents your accountant needs for taxes:
Income Records
- W-2s
- 1099-NEC / 1099 MISC
- Other income
Expense Documentation
- Receipts or summaries for deductible expenses
- Credit card and bank statements
- Home office expenses & mileage logs
Previous Year’s Tax Return
- Federal and state returns from last year
Personal and Dependent Information
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Social Security numbers
- Birthdates for dependents
- Changes in marital status or dependents
Investment & Retirement Statements
- 1099-DIV / 1099-INT / 1099-B
- Retirement contributions (IRA, etc)
For more information, H&R Block® has put this comprehensive list together.
Do You Have a Tax Question?
Finally, one of the best resources for tax questions out there is the IRS website. From tax tips to forms and publications and everything in between, the IRS website is user friendly and has the answers to your questions. You can also look there for any changes that impact small business owners for this tax year.