You cringe as you realize your small business tax deadline is here! Wasn’t it just April and you realized that the 15th was around the corner? Postponing tax filing was an easy decision to make. And now ~ it’s the real deadline. It’s a necessary evil, but it can be easier. The October 15th tax deadline is just around the corner.
Know the papers you need
The first step is always knowing what you need. Some of this information can sound like a foreign language. Do a little research and start with a checklist for these papers can help.
Filing status is different for many small businesses.
- For corporations, an Employer Identification Number (EIN), also known as a federal tax identification number, is used to identify tax reports to the IRS.
- For sole proprietorships, use your social security number.
Income can be found on your bank statement, invoices or sales receipts. These include:
- Wages and salary
- Self – employment income
Expenses can be found in your credit card purchases, debit and bank statements, and vendor statements.
- Bad debts
- Employee compensation
- Home office
- Legal and professional fees
- Pension plans
- Travel, meals and entertainment
The IRS has many resources to help you decide on small business expenses.
Find the papers online
It may be difficult to gather these papers together. However, with online banking and online access to your credit card statements, you can consolidate this information. If you use QuickBooks and have gotten behind, you can download information to your banking and credit card accounts instead of manually entering it.
It may feel completely overwhelming to gather all your information. Not to worry! There’s help at hand! Professional organizers and Daily Money Managers often come in to assist you in gathering all this information. Your accountant can send you a tax worksheet from previous years to remind you about this information.
Keep papers digitally
Keeping a digital copy of this information can ease your stress too. Neat Receipts or Neat Connect (sponsored link) scan in your information and help you with tax categories. As you find receipts in your papers, scan these and categorize. Keep all your information together and accessible. Scanned information can also be exported into QuickBooks, TurboTax and Excel.
Struggling with your personal taxes too? It’s the October tax deadline, but with a few other papers to find. However, these same online and digital resources are available.