The Tax Cuts and Jobs Act (TCJA) took effect on January 1, 2018, and it means big changes for the way businesses are taxed. Step 5: Keep an eye on recent tax reforms.
Read up on those taxes on your state tax authority’s website and talk to your CPA to make sure you aren’t forgetting any. There might also be state and local taxes you need to pay. If you’re not sure how much you owe in federal taxes, a good rule of thumb is to set aside 30 percent. If you owe at least $1,000 in taxes, the IRS usually requires you to make estimated tax payments through the year. Make sure you know what kind of business entity you are, and check out Bench’s in-depth guide to business tax forms if you’re not sure. You’ll have to file more forms if you hired employees ( Form W-2) or contractors ( Form 1099) and your payroll provider doesn’t automatically file W-2s and 1099s, or if you plan to deduct depreciation ( Form 4562). On top of your personal tax return ( Form 1040), every business owner must submit additional tax forms depending on what kind of business they run. Step 3: Identify which tax forms you need to file. Organize receipts for:Ĭloser to tax time, bring together all your relevant business and personal information, including last year’s tax returns and your Employer Identification Number (visit the IRS website if you don’t know it). Hold on to invoices, sales records, receipts for business expenses, and any other documentation for earnings or expenses. The earlier you catch any major bookkeeping errors, the less trouble they’ll cause you during tax time.
1065 tax preparation professional#
If you’re not sure whether your books are set up properly, get an experienced CPA or tax professional to take a look at them. Separate your personal and business accounts if you haven’t already. Having a hard time finding all your business’s expenses and income on your bank statements? That might be because they’re mixed in with your personal expenses. If you haven’t done that yet, get together all your bank statements and receipts and make sure the information there matches the information in your books.
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Make sure all your revenue and expenses are entered and categorized properly in your accounting software or spreadsheet.
Gathering your company’s financial information for taxes doesn’t have to be stressful, especially if you’ve got a solid bookkeeping system in place. Here’s what you should do to get ready for your 2018 return. But preparing ahead of time is the single best way to prevent tax-time stress. Most small business owners would rather get their teeth pulled than think about taxes. This article was written by our friends at Bench.
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