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Many first-time business owners feel a sense of dread regarding their first tax season. While preparing and filing taxes is a chore that no one enjoys, the added steps and greater complexity brought on through business ownership can cause no end of complications. Developing a few good financial and organizational habits can make for a much easier tax season.
Document Everything
Trying to tack down a financial receipt or tax document that has gone missing can turn tax preparation into a real ordeal. Documenting and recording all expenses and transactions, no matter how minor, is a good habit to get into. Producing a backup copy of important documents for redundancy may also be a good idea.
Set Reminders
Tax time has a way of sneaking up on you. Setting reminders for the end of the fiscal month or quarter is another good habit. Taking stock of your records at set intervals can help to keep disorganization at bay. Failing to set a reminder means that important dates and deadlines are more likely to catch you by surprise.
Always File Important Documents
Failing to file important documents promptly and consistently can be disastrous. Loosing track of important records or being unable to locate a document during an internal audit or financial assessment can quickly become a serious situation. Good filing and organizational habits also mean that you can quickly produce any important documents that may be needed should you choose to consult a financial business for help with your taxes.
Assess and Reorganize
No system is perfect. Just because your filing and paperwork processes are adequate for your current needs there is no guarantee that your business won’t outgrow the system before the next tax season. Assessing your current system and efforts and identifying any areas that may require further attention or additional improvement can have significant long-term benefits.
Seek Professional Assistance
The services and assistance of a professional accountant or financial advisor may prove to be a key resource. Small businesses and organizations with a limited staff often lack the financial business skills, understanding and expertise that only a professional can provide. Never be afraid to of seeking help when you need it.
A few good habits can greatly simplify your tax preparation efforts. Keeping organizing, filing all documents promptly and weighing the effectiveness of your document-management process from time to time to can all make quite a difference.
Kara Masterson is a freelance writer from Utah. She enjoys Tennis and spending time with her family.
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