When you’re gathering all your tax documentation for your CPA or other preparer, don’t forget these five essentials:
- Start with the money. Prepare all your core financial documents, including balance sheet, income statement, cash flow statement, and an assets and liabilities statement.
- Meticulously document car expenses.
- Be even more meticulous with home office expenses.
- Look beyond the IRS.
- When in doubt, farm it out.
This includes mileage, tolls, parking, gas and other expenses associated with business-related automobile travel. If you’re able to prove that it’s business-related, you may also deduct expenses for insurance, leases, and gas.
If you work out of your home, listing your expenses can be a little tricky, especially when it comes to the physical space expense. Make sure you follow the rules to the letter when it comes to deducting these expenses.
Don’t forget about your other tax obligations: property, payroll, local taxes, excise tax, self-employment taxes, etc. Neglecting these can get you in big trouble. I know a small business owner who forgot about payroll taxes and ended up with liens on her business. Not good!
An efficient Online Business Manager can easily manage all your most essential tax prep responsibilities. She will make sure you or the appropriate team member creates those financial documents you need to have all buttoned up, and she can even resource an accountant if you need one.
Take a deep breath and get going. It’s less than a week before your taxes are due, so give yourself the gift of delegation. Partner with an OBM and let her manage the documentation preparation process for your business taxes this year.
To learn more about how an online business manager can manage and improve your operations, contact me today!