If you haven’t filed your taxes yet, you’re quickly running out of time. Tax day — May 17 this year for individuals and small businesses — is fast approaching. The chances are good that your tax accountant is overloaded with tax returns that need to be prepared and filed for fellow procrastinators. This means you’ll have to take a number and hope your accountant works quickly through the pile and gets to yours before the deadline hits.
It’s Good to Be Prepared
If you’re in this boat, it’s a good idea to do everything you can to move the process along on your side. That includes walking into the office with everything your accountant needs to get your taxes finished and filed on time.
Here are three of the basics that you should focus on for small business tax preparation. Arriving at your accountant’s office with these in hand will make his or her job much easier. While it won’t necessarily move you to the top of the stack, being prepared ahead of time will help avoid delays in the process due to missing information.
1. Personal Information
It sounds crazy, but some people arrive at their accountant’s office without their social security number or their Employer Identification Number (EIN). When you head to your accountant’s office, make sure you have all your personal information with you, including the legal name of your business if you’re an LLC.
Personal information for the 2020 tax year — and 2021 when it gets here — also includes information about Stimulus Payments you have received (or not). These amounts are claimed on the individual taxes. If you haven’t received what you were eligible for, these payments will be claimed as additional refunds.
2. Previous Year’s Tax Return
If your accountant did your taxes last year, you’re in luck. They should have your previous year’s tax return on file. If you’re using someone new to prepare your taxes, bring a copy of your last tax return when you drop off your tax documents. Your accountant will need that information to prepare your taxes this year.
3. Financial Reports
While this is represented as one item, it’s really multiple items under one heading. To accurately calculate your tax liability, your accountant needs a complete picture of the financial state of your business. You’ll need to have the following documents on hand.
- Profit and loss statement
- Balance sheet
- Cash flow analysis
You’ll also need to provide information about your assets and any loans the business has, as well as payroll data. If you’re an LLC or a sole proprietor, you’ll need to provide your personal financial information too.
Adams Accounting Solutions Is Ready for Tax Day
While this list is by no means complete, having these items with you when you go to your accountant’s office will help move the tax prep process along more quickly. Adams Accounting Solutions has been helping small businesses in Kansas City with their taxes for over 25 years. We’ll prepare your tax return and get it filed quickly and efficiently — especially if we have the above information to start with. Contact us today to schedule an appointment. There’s only one week until tax day!
