Another Year, Another Tax Season

By Jeanette Bednar, Jarvis Management LLC

We’ve yet again reached a pivotal time of year for any business owner - tax season. While many business owners feel overwhelmed during this busy time period, there are ways to manage finances and remain worry free.

Most business owners know a necessary first step in preparing for taxes is completing your Forms 1099. By the time February and March roll around, you may start to wonder if you can file an extension. Generally, you can extend the filing date for a business tax return for six months, but you must pay any taxes owed on the due date. Other important items to review include payroll, including tax and state & local filings. Filing an annual report with the Secretary of State will help avoid interest and other penalties.

The real secret to staying on top of tax season is keeping track of your finances throughout the year. Staying organized and keeping good books and records will not only keep your business running smoothly, but it will help eliminate the risk of an audit as well as help you keep track of valuable tax deductions. While many small businesses attempt to keep track of their own books when starting out, tax season can be a reminder of how valuable having a trusted bookkeeper can be.

In addition to keeping your books organized throughout the year, it is important to budget and plan for estimated income tax payments prior to tax season.

Another business best practice is keeping in touch with your CPA not only in early spring, crunch-time for taxes, but throughout the year. Your accountant can help you track income and spending, monitor your profits, and manage cash flow. If you choose to manage your own books, you can often work with your accountant ahead of time and send them early reports to ensure you’re doing the bookkeeping properly.

If you're tired of doing your own bookkeeping, or if you decide this is the year you want to get a better work-life balance, you might consider a service like Jarvis Management. We can help you organize and keep track of your finances, with personalized customer service, and by next tax season you might just be stress free!