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Don't become
overwhelmed
preparing
your
financial
statements.
Ahh...Tax
time again,
for small
business
owners this
can be a
stressful
and
uncertain
time of the
year. Many
small
business
owners
choose to
hire a tax
accountant
to prepare
their taxes
to assure
that all of
the
appropriate
deductions
are made and
the
information
filed with
the IRS is
accurate and
professional.
Following
these simple
steps will
assist a
small
business
owner to
have a
positive,
effective
and time
saving first
meeting with
their tax
accountants.
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Things You'll
Need:
-
Your
receipts for
expenses and
earnings.
-
Employee
records
(if any).
-
Check
account
statements.
-
Credit card
and/or loan
statements.
-
Calculator
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Patience-and
lots of it!
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Step
1
Preparation on your part
will save time in the
long run.
If you plan to go to
your accountant with all
of your receipts and
papers to go through and
add up, think again.
Most accountants have
too much to do in too
little time, especially
around tax season to try
to do all of the work
for you. Keep in mind
that they are only human
as well, and have a
clear understanding of
what your accountant
will need from you when
you come to your
appointment. A little
bit of preparation on
your part will go along
way to ensure your taxes
are completed within a
timely manner. |
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Step
2
Separate your receipts
into earnings and
expenses categories.
Gather all of your
receipts, invoices,
checking and savings
accounts printouts.
Separate your receipts
and printouts into two
categories: Expenses and
earnings. |
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Step
3
Figure your earnings for
the year.
Add up all of your
earnings. Make sure you
double check your
figures with any
computer program
(such as quickbooks) and
your bank statements to
verify your earnings for
the year. |
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Step
4
Figure your expenses for
the year.
Next, figure out all of
your expenses for the
year which may include
trips, business meals,
employee payroll,
materials, fuel, etc.
Add up each of the
expenses and keep
expenses in five or six
major categories to make
reading your financial
sheet easier. For
example, you may put the
expenses for fuel, your
business truck loan, and
business truck repairs
under the same category
which you may call
"TRUCK". |
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Step
5
Get all information
on paper.
Type a "Financial
Overview Sheet" in which
you have your total
earnings and expenses
listed on
one organized sheet. Of
course, you will want to
take all of your paper
work with you when you
go see your accountant
in case there is
something that needs to
be verified.
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Step
6
Find out what other
information your
accountant might need.
Make sure you write down
any other needed items
from your accountant
when you are in the
meeting with him/her.
Now is the time to write
it down so you can get
your accountant what
additional information
is needed as quickly as
possible so that the
accountant can complete
your tax returns in a
timely manner. |
