Stampone & Associates
Accounting Services

Blog

Tax Planning: The Ultimate Time Saver

TaxPlanningTimeSaver

As a small business owner, do taxes cause you anxiety come April? Tax planning may seem out of the question, but in reality there are many ways to make your tax filing easier by implementing a few small, pre-planning processes throughout the year. Being proactive can save time, and can also be a great tool for the financial planning of your small business. While the first reaction to pre-planning for taxes is generally “I don’t have time,” we’ve provided a breakdown of simple and easy to implement to-do’s to help keep you organized and prepared.


Keep Rolling Track Your Income and Expenses

Don’t be that small business owner sifting through a shoe box of receipts come April. Monitor your monthly income and expenses with bookkeeping software, or even in a Excel or Google sheet. It’s as simple as tallying these figures at the end of every month, while itemizing each debit and credit. Be sure to hold on to supporting documentation (receipts, pay stubs, etc.) in case of an audit, but having one central repository with all of your financials updated monthly makes for a super clear financial picture for you as a business owner, and for your accountant to help them in calculating your tax liability.

 

Get The Right Tax Planning Tools

As mentioned above, you can opt to purchase accounting software, or track the details on your own. The advantage of accounting software is the ease of use and reporting functionality– while it may cost you up front it can save you time in the long run and is highly recommended for every small business owner. By establishing a diligent bookkeeping process, you are setting yourself up for success– entering your transactions daily, weekly or monthly helps you to categorize and track expenses while the information is still fresh, and can also help to catch any errors or omissions that may have occurred.

 

Set Reminders for Key Tax Dates

Consult the federal tax calendar as well as your states’ tax calendar to determine key deadlines. From there, set calendar reminders in advance to be sure you never find yourself in a position of having to pay a penalty or late fee.

 

Find Your CPA Soulmate

The biggest asset for any small business owner is their accountant. Not only will your accountant keep you on track with your tax liability, they will also be essential in helping you navigate new tax laws, and maximizing your deductions. To make the most out of your relationship with your accountant be sure to keep them in the loop with new expenses, hires, or key decisions. They will be able to help you by preparing financial statements to determine the health of your business, as well as projections for the future.

 

Get Your Files In Order

Do you have all of your 1099 and W-2 forms in one place that you can easily find them? Great! If not, it’s time to get organized. Talk to your accountant to see which paperwork is required for your business, and set up folders digitally, or as hard copies in your office to easily locate the employee or contractor data you need at the drop of a dime.

 

Small Business owners are notoriously stretched thin with their time. There is a lot of work to be done and taxes can often fall to the bottom of the priority list until April. Planning for tax season is extremely important, however, and with the simple steps outlined above, can become an easy part of your monthly routine.

Now is as good a time as ever to do a tax check-in. Contact Karen Stampone at Stampone & Associates today for a quick look at your tax projection to date, and to get a pulse on planning for the rest of the year. It can save you time and money come tax season 2019!

Karen Stampone