As tax season quickly approaches, you may be dreading the time and effort it takes to file for your small business. But by taking the time to prepare, you can tackle your taxes painlessly this season and next! Below are three ways to get ready for the upcoming tax season, and three things to do now to make 2016’s tax season even more effortless:
For now…
1. Include all deductions: Take the time to include all deductions for items you paid for with personal funds or cash when preparing your financial statements.
2. Get organized: When putting together the information your tax professional needs, it’s best to be as organized as possible. Be sure to provide the information clearly and list expenses by type (office supplies, rent, etc.).
3. Report your charitable work: Don’t forget to report any charitable donations of business inventory or assets to your tax professional.
For 2016…
1. Keep every receipt: Commonly red flagged items, such as meals or travel will need documentation. While a receipt isn’t necessary for tabs less than $75, you’ll have to be able to note the date, place, business purpose and total of each transaction, so it’s both easier and faster to simply keep the receipt.
2. Do your research: Come up with a list of questions you have regarding all things tax related and give them to your tax professional. Use online resources for more information about business tax laws and to help you make the best decisions for your business.
3. Track your assets: Throughout the year, keep track of any sold or disposed of business assets such as equipment, computers or vehicles. Your tax professional will need to know when and how much the sale was worth and by keeping track of these as they occur, you’ll avoid having to find the information come tax time.
For more tax tips, read the article Ten Tax Tips for Business Owners by Bonnie Lee, a tax expert and author.
For more information about Telhio’s financial services, contact our business services representative at 614-221-3233, option 6.
Telhio Credit Union is open to anyone who lives, works, worships or goes to school in Franklin, Fairfield and Delaware counties and the surrounding communities including Dublin, Johnstown, London, Orient, Pataskala and Reynoldsburg. Founded in 1934, originally as the credit union for the Columbus Telephone Co., Telhio is a not-for-profit financial cooperative where its members are also its owners. Driven by its philosophy that members come first, Telhio is committed to the highest standards of responsibility and conduct. Telhio offers a variety of innovative programs, services and products to support its members’ financial needs. Telhio offers six branching offices throughout central Ohio and nearly 4,000 shared branching locations nationwide. Additionally, Telhio credit union participates in the highest level of combined federal and private share savings insurance available, insuring deposit accounts up to $500,000.*
* Federally insured by NCUA. Additional coverage up to $250,000 provided by Excess Share Insurance Corporation, a licensed insurance company.
