3 questions to ask yourself to help prepare your small business for tax season

Did you know that your small business taxes may be due on March 15th – instead of April 15th?

Yikes, right?  😬

Everyone knows about the April 15th deadline – but if your business is registered under certain structures (like a multi-member LLC or S-Corp), you’ll need to be ready to file your business taxes a whole month earlier than that 😳

So – if you’re wondering why I keep talking about your taxes MONTHS ahead of the April deadline, well … this is why 😂

I really want you to be prepared long before the due date, so here’s three easy and important questions to help you get the ball rolling:

✅ WHAT IS YOUR BUSINESS STRUCTURE?

LLC? S-Corp?  Something else?  This will affect when you file your taxes, and what kind of tax documents you’ll need to file.

✅ DO YOU HAVE ALL OF YOUR TAX DOCUMENTS FOR 2020 IN ONE PLACE?

You will need to gather everything from your bank statements to your receipts to your previous year’s return.  It’s a lot to round up – and some of the older receipts and bank statements can take days (or weeks) to track down.

✅ IS YOUR BUSINESS BOOKKEEPING CURRENT?

Without this, you won’t know what numbers to write in the little boxes on your tax form.  And getting current could take a long time to accomplish. Are you only 6 weeks behind?  That’s manageable.  6 MONTHS? Well … let’s just say you’ve got some work to do.

These questions are a good start, but don’t worry – I won’t just leave you there. Click on the below link to find a helpful checklist to walk you through the tax prep process.

Small Business Tax Preparation Checklist

It’s full of details on what documents you need, what reports you’ll need to create from your financial software, and more.  So that, whether your taxes are due in March or in April, you’ll be ready!

(By the way … in case your answer for all of these started with “I don’t know” and now you’re hyperventilating into a brown paper bag – no worries!  I help my clients with these every year, all year round – and I’d love to help you, too. Just reach out to me at elizabeth@alliancebookkeepingsolutions.com to schedule a free consultation to get started!) 

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