Last-Minute Business Tax Tasks To Do In March
The thought of filing taxes can be stressful for small business owners. Remove some of the pressure and prepare for the April 15 deadline when you complete several last-minute tasks this month.
Choose a Tax Preparer
Ideally, you’ll already have a tax preparation appointment set up by March. However, if you procrastinated on this task, schedule an appointment now.
File for an Extension
Gain extra time to prepare your tax return thanks to an extension. File for this extension in March rather than wait until April when your taxes are due.
Pay Estimated Taxes
If your business will owe a tax payment, pay this bill before March 31. You’ll owe penalties and interest if you underestimate the total you owe, so try to be as accurate as possible.
Make your SEP and IRA Contributions
The deadline to contribute to SEP, the Simple Employee Pension, and your IRA is April 15. Make your contribution to one or both of these retirement accounts in March before you file your tax return so you can take a deduction on your 2018 return.
Organize Financial Documents
Your tax preparer may organize your receipts and paperwork for you, but this service may cost extra. Instead, gather your financial documents and organize them yourself. This paperwork includes:
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Proof of income.
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Business expense receipts.
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Bank and credit card statements.
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Other paperwork that details income and expenses.
Once you collect all your financial documents, create a separate file for income, office expenses, business insurance premiums, mileage, and other expenses. You may then collate the documents by date or calculate the totals in each category.
Double Check Income
The IRS is more concerned about the accuracy of your business income than your expenses. Review your income details for the year to ensure you have proof of every penny and will include it on your tax return.
Hire a Bookkeeper
You can handle tax prep yourself, but consider hiring someone to help you. To maximize your time, you may wish to hire a bookkeeper. This professional can sort your financial documents and create reports that simplify your tax preparer’s job.
Note Tax Prep Improvements for Next Year
As you prepare to file your tax return for 2018, consider ways you can improve the process next year. Schedule time each month to sort receipts, implement a better mileage tracker method or shop around to lower business insurance, rent or office supply expenses. These steps will improve your tax prep and lower your stress in the future.
Relieve some stress during tax season when you perform these last-minute tax tips in March. They simplify your tax preparation and help you file an accurate return.