Prepare for Tax Season Now
Just hearing the phrase tax season is enough to make most of us squirm, especially those of us in the industry! You may not think tax season is close, but the time to start preparing is now. Most people procrastinate until the end of the year or even April to get their books in order, but this can cause a headache for you and anyone involved with your finances.
Getting your books up to date before the end of the year is important because it can give your tax preparer time to help maximize your deductions. This is especially important if you own your own business. Every deduction counts and if your books are in order prior to the end of the year, it affords your tax preparer time to do some planning to use tax strategies to maximize your deductions. This can even include deciding wait on expenses or retirement contributions until the following year.
If you wait until December 31st to get your finances organized you’ve given up the opportunity to have a professional give you advice on where and how to invest your money wisely to maximize your deductions. Also, waiting until the busy season will ensure that your return will be extended and you may not be able to find the help you need until after the deadlines.
Have questions on 1099s? Click here to see my blog on how small businesses can prepare for tax season by preparing 1099s!