6 Ways a Bookkeeper Helps Prepare YOU for Tax Season!
Are you feeling overwhelmed with tax time coming up?
We can help you stay on top of things with six simple ways!
1. We will gather and Organize Your Financial Records.
Swift through and reconcile your monthly bank statements, make sure you have gathered W-9’s from every employee
Consequences:
If you fail to request a W9 form from an organization you've contracted for in the past - they could potentially deduct taxes from your payment, regardless of your non-employee status. This is “backup withholding” at 24%.
2. Regularly review & categorize Your Expenses.
We organize your transactions and generate reports to show how you spend money in different accounts.
Consequences:
Having your expenses separate by account can be super beneficial come tax time. Without having this, you aren’t aware of exactly where all your money is going.
3. Be aware of deadlines
We understand that meeting deadlines can be stressful, especially when they vary by document. We are consistently updating these deadlines, so our clients will be up to speed.
Consequences:
Being late on your taxes can cause you to have penalties and late fees. Your unpaid taxes determine the late fee. The IRS charges 5% of your unpaid taxes each month, including interest, for any partial or unfilled months.
4. Separate business/personal expenses.
Mixing personal and business expenses can lead to losing out on business deductions. Avoid rushing and keep them separate.
Consequences:
The IRS raises a red flag and can audit you if you keep your expenses together. You can’t measure your business expenses correctly. You can lose out on money on your taxes.
5. Making sure you’re not taking credits/deductions that don’t apply to you.
Feeling confused if credits apply to you or not? A bookkeeper can help you figure these situations out, so you don’t end up having to pay those back.
Consequences:
In some cases, you might think you apply for credits when you don’t. The more deductions you get, the less you will owe. Eventually, you would have to pay back all the money you falsely received, with possible legal questions and fees.
6. Ensuring you’re getting the accurate benefits you deserve.
We want you to save money anyway you can! If you skip over some of the benefits you might apply for, you risk losing money that we could’ve helped you save.
Consequences... well there are no consequence's for this one!
The upside would be receiving correct deductions, that way you are able to keep some money, and we ALL would love that!
For more ways on how we can help you, schedule a free consultation on our website today!For more ways on how we can help you, schedule a free consultation on our website today!
