For many small business owners, the annual tax preparation process can be extremely stressful and time consuming. But implementing consistent bookkeeping habits throughout the year can greatly simplify year-end filing and help identify potential deductions.
At Pittroe Business Services, our mission is to provide hands-on support so you can focus on business growth, not administrative tasks. Follow these proactive tips recommended by our expert team:
Perform Regular Account Reconciliations
Reconciling your accounts frequently prevents deduction surprises later. This involves comparing bank and credit card statements to bookkeeping system transactions and resolving any discrepancies. Staying current with monthly reconciliations helps identify potential missed deductions or income for your annual taxes. It also keeps your records accurate and organized for providing necessary documentation.
Meticulously Track Mileage
Don’t wait until year-end to tally annual business mileage that may be eligible for vehicle expense deductions. Use a mileage tracking app to closely log all work-related trip mileage in real-time. Consistently documenting deductible mileage provides the detailed records and proof needed to justify the write-offs come tax time. Don’t leave this important tracking to the last minute.
Maintain Extremely Organized Financial Records
Having properly categorized and easy to access receipts, invoices, bank statements, and other financial documentation streamlines preparation tremendously. Implement organized digital systems to track tax-related records so they are easily accessible later. Proper documentation also helps verify specific expenses, deductions, income, credits, and other items for your accountant.
Closely Review Estimated Quarterly Taxes
Before Q4, thoroughly evaluate your estimated quarterly income tax payments submitted to confirm you’ve remitted sufficient amounts to avoid penalties for underpayment. Work with your accountant or bookkeeper to adjust final quarter payments as needed based on projections. Your bookkeeping professional can advise if shortfalls are expected.
Strategically Partner with Accounting Experts
Work closely with an experienced bookkeeping professional and accountant who provide ongoing strategic guidance for maximizing deductions while maintaining full compliance. The bookkeeping experts at Pittroe partner with clients year-round to implement optimized processes that simplify year-end filing. Our specialized expertise equips you with the preparedness needed to tackle taxes smoothly.
At Pittroe Business Services, our sole focus is providing entrepreneurs like you with tailored solutions to create time for focusing on core business growth. Contact us today to put these habits in place to reduce stress this upcoming tax season. Consistent and meticulous bookkeeping practices pave the way for optimized year-end tax preparation and filing.