Tax deadlines seem so far away, but as soon as you know it, it’ll be time to file those taxes. This year, don’t let the deadlines creep up on you and your business! Start the new year off on the right foot and get well prepared come tax time. Here are some steps to take to prepare for your taxes this year so you won’t procrastinate.
Figure out your deadline
Depending on your business entity and tax schedule, you’ll be filing your business taxes on March 15 or April 15. Does your business file Form 1120? If so, it must be filed by the 15th day of the third month after the close of the calendar tax year (March 15). If you use a Schedule C, this form becomes a part of your Form 1040 and is due on the April 15 deadline with your personal income tax return. Here’s a list of deadlines for specific tax forms:
March 15 deadline
April 15 deadline
- Form 1065 (Partnerships, multi-member LLCs)
- Form 1040 (S-Corporations, sole proprietorships, single-member LLCs)
- Schedule C (Sole proprietorships, single-member LLCs)
Collect and review records
When you start your taxes well ahead of the deadline, you’ll have ample time to collect and review records. You may not have had the time to review records on an ongoing basis during the year, so now’s the time to double check your numbers and paperwork.
Here are some examples of receipts and records you’ll need to collect:
- Sales or services receipts and records
- Business expenses (transportation, office supplies, advertising costs, etc.)
- Estimated tax payments made
- Federal and state payroll returns
- Wages paid to employees
- Interest from business checking and savings accounts
Record them into your accounting system
If you haven’t done so already, be sure to record all your income and expenses in a bookkeeping or accounting system. It doesn’t have to complex but it’ll serve the purpose of being organized and recording all your income and expenses, so you have it all on one secure place. When tax time comes, you’ll be more than prepared to tackle it head on.
What are some ways you’re preparing for tax time?