This is the fourth installment of the “Monday Money with Danetha Doe ” guest series. Danetha Doe provides accounting services and works with software developers to help make accounting easier for its users. In this installment, she runs through what small business owners need to organize for a meeting with their tax professional. Read on…
Can you believe it’s 2015 already!?!? Where did last year go? Well, there’s one way to find out: your accounting records! And speaking of accounting, it’s just about time to meet with your tax pro to get your 2014 returns filed. The key to this process? Organization! Here are 5 things every small business owner needs to have organized and ready before the tax filing meeting…
- Chart of Accounts. An organized chart of accounts will help your tax prep pro get a good picture of your business and its various accounts. (Learn more about what an accountant in accounting is.) Make sure the way you have your Kashoo account set up makes sense to you and to whomever is filing your taxes.
- Gather All of Your Receipts. Depending on the country, state or province in which you run your business, the expense receipts you need to retain may vary. To be on the safe side, just have all of your receipts handy. Hopefully you’ve been capturing your receipts all year long, in real-time with Kashoo’s handy mobile apps!
- Reconcile Your Transactions. If you’ve been sticking to your weekly bookkeeping date, there shouldn’t be much reconciling to do! But if you haven’t (and that’s OK), you may have a backlog. This can be a time-consuming task—especially if the backlog is long—so perhaps consider hiring a bookkeeper. Either way, make sure you have it done before you hand over your information to be filed.
- Document Your Contractors. If you worked with independent contractors, make sure you have their W-9 information and all of their invoices. If you don’t, ask them for it now.
- Organize Invoices. Hopefully you’ve been doing this all year. But if not, make sure you enter the invoices into Kashoo so that your tax accountant has back up for any revenue you’ve collected.
And just because, here’s a bonus tip: Have your 2014 Profit and Loss statement ready to roll! For your tax prep pro, this is the core report that will not only show you your business’ bottom line, but also indicate what taxes you may owe!
Now we want to hear from you. What’s one thing you will do today to make you’re ready to meet with your tax professional? Tweet it at us.
Danetha Doe is a financial growth consultant for small businesses, specializing in beauty and fashion. She works with clients to improve their cash flow and profit margins, so they can expand and achieve financial success. An accomplished speaker and writer, she has been featured on Huffington Post Live with Suze Orman, Mind Body Green, YFS Magazines, and other media for her business accomplishments and expertise in cloud accounting. Visit her site danethadoe.com for free business strategy advice and to learn more about her affordable services.