By Analytix Editorial Team
Regardless of company size, tax time is one of the most important periods for any business. Your CPA will need multiple documents that are readily available if you want to avoid last-minute headaches and any financial loss. More importantly, you need to make sure your paperwork is organized. Assessing your investments and other financial transactions might involve searching through significant amounts of paperwork.
Organizing this paperwork in preparation for tax time is probably one of the biggest challenges for a growing business. It can be very time-consuming. As a result, it makes sense to keep the documents ready to hand over to your CPA. To assist with this process, we have made a checklist of documents and papers that you need to keep handy for your CPA.
Invoices, Investment accounts and records of financial transaction, including bank and brokerage statements
Each transaction, whether small or big, should be tracked by a business. Income records, including bank statements, will also need to be provided to your CPA. Also, form 1099-INT, which reflects savings and interests, will be needed. Recording every transaction as well as keeping bank statements reconciled is very important.
Businesses classified as partnerships or corporations need to report income and income loss in the form of Schedule K-1. The Schedule K-1 carries details of the shares held by individuals within the corporation or partnership.
Office expenses, Rent, Interest expenses, miscellaneous related expenses
Office expenses include supplies, travel, etc. Furthermore, using your car for business purposes can make you eligible for a tax deduction. This holds true for fuel and toll expenses as well, for which you need to store receipts. You can also claim deductions on office space rental costs.
If your business employs staff, you will need to provide documents detailing their wages. State payroll return forms may also need to be updated. The Social Security website allows you to create and print W-2 forms for your employees. Total earnings need to be reported for staff with expertise or resources hired for a specific purpose. This can be completed through a 1099-MISC, which details payments to contracted staff.
Deductions can be claimed by you if your company is providing retirement plans to your employees, as well.
If your business operates out of your home, your documents for mortgage interest, maintenance and insurance can be included for deductions. For a self-employed individual, the Form 8829 can be used to claim this deduction.
Interest expense and Insurance
If you have taken a loan for business activities, money borrowed is eligible for a deduction. You will need to include the relevant documentation for this. This applies to insurance policies that have been taken to cover the business as well. You will need your insurance papers to claim this deduction.
At Analytix, we have helped scores of businesses increase profitably. We are currently offering a free analysis of your business processes and accounting system. If you would like to learn more on how Analytix Solutions can help move your business forward, please call us today at 781.503.9002 or email us firstname.lastname@example.org.