Tax Preparation Checklist for Your Small Business
Tax time is here and, if you’re scrambling with last-minute filings for your small business, you’re not alone. If you’ve ever wished for a tax preparation checklist to help with this task, we have the ultimate guide to help you prepare your business taxes.
1. Meet your bookkeeper. Meet with the person who handles your business’ accounting to go through this checklist. They won’t file your taxes, but they can gather these items for your company’s tax accountant.
2. Update mileage logs. If you use a personal vehicle for business, you probably deduct the standard mileage on your tax return. This means that you need to keep track of that mileage and provide it to your accountant for tax preparation.
3. Gather bank statements. Make copies of your business’ bank statements for last year.
4. List out-of-pocket expenses. Any expenses that you paid out-of-pocket on behalf of your business should be listed and documented.
5. Gather all 1099s received. Did you receive any 1099s for interest or other payments last year? If so, those need to go to your accountant to be reported as income because the IRS receives them as well.
6. Issue appropriate 1099s. If you owe vendors or contractors 1099s, those need to go out immediately. If you paid a non-corporate service more than $600 last year, you might need to file this form.
7. Gather receipts for large purchases. Find any receipts for large asset purchases, such as equipment, vehicles, and even property. List when the asset was purchased, the purchase price, and when it was placed in service.
8. Reconcile loan balances. If you have any current loans, pull the latest statements and make sure that the balances match what you have listed on your company’s balance sheet. Loan payments against interest are tax deductible, so current information is important.
9. Properly categorize expenses. Your company’s expenses could provide valuable deductions, so it’s vital that you have these categorized properly. This includes expenses for meals, travel, training, and equipment.
10. Note any ownership changes. If your company has had any ownership changes in the past year, your tax preparation accountant will need to know this when you hand over all of this tax information.
Owning and running a small business in any environment can be a challenge. Most companies need access to capital to survive and grow in the short and long-term. Contact Smart Capital Lending Group now to find out how our various commercial financial solutions can help your company meet its financial goals.