Tax Season is Coming…oh wait, IT’S HERE! Check Out Our Essential Preparation Guide Below

Written By Breean Glantz

As a small business owner, tax season can feel overwhelming. But with the right preparation, you can simplify the process and ensure a smooth filing.

At Harmony Tax & Accounting, our goal is to take the stress out of managing your finances, allowing you to focus on what you do best—growing your business!

We aim to ensure that your financial records are accurate and up-to-date, so you don’t have to worry about deadlines or compliance issues.

Here are some essential steps to take before tax season hits.

1. Organize Your Financial Records

Start by gathering all your financial documents. This includes:

  • Income Statements: Track all sources of income.

  • Expense Receipts: Organize receipts by category—office supplies, fuel & travel, utilities, meals, etc.

  • Bank Statements: Ensure you have your bank statements for the year.

2. Review Your Books

Before you file, conduct a thorough review of your books. Check for:

  • Accurate Classifications: Ensure expenses are categorized correctly.

  • Outstanding Invoices: Follow up on any unpaid invoices to boost your income.

  • Bank Reconciliations: Make sure your books match your bank statements.

This review can help you identify any discrepancies before they become issues.

3. Understand Your Deductions

Familiarize yourself with potential deductions that apply to your business. Common deductions include:

  • Home Office Expenses: If you work from home, you may be eligible for deductions.

  • Business Expenses: This can include supplies, advertising, and professional fees.

  • Vehicle Expenses: If you use your vehicle for business, keep track of mileage related directly to your business.

Consulting a tax professional can also help you identify additional deductions.

4. Prepare for Changes

Tax laws can change from year to year. Stay informed about any new regulations or credits that may affect your business. Check the IRS website or consult with a tax professional for the latest updates.

5. Set Up a Tax Payment Plan

If you anticipate owing taxes, it’s wise to set up a payment plan ahead of time. Determine how much you’ll owe based on your estimated income and set aside funds to cover your tax liabilities. This can help alleviate stress as the due date approaches.

6. Hire a Professional

If tax season feels particularly daunting, consider hiring a bookkeeper or tax professional. We can help ensure your records are accurate and your taxes are filed correctly, allowing you to focus on running your business.

Final Thoughts

Preparation is key to a successful tax season. By utilizing the help of our expertise, you can feel confident about a smooth transition into 2025.

If you need assistance getting your books in order or preparing for tax season, don’t hesitate to reach out. Let’s make this tax season the easiest one yet!

Breean Glantz
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