The thought of filing taxes can be stressful for small business owners. Remove some of the pressure and prepare for the mid‑April filing deadline by completing several last‑minute tasks this month.
Choose a Tax Preparer
Ideally, you’ll already have a tax preparation appointment set up by March. If you procrastinated, call and schedule an appointment now so your preparer has time to review your records.
File for an Extension
If you need more time to prepare a complete return, file for an extension before the filing deadline rather than waiting until the due date. An extension gives you extra time to finish your return but does not extend the time to pay any tax due.
Pay Estimated Taxes
If your business will owe a tax payment, make your estimated tax payment by the appropriate quarterly deadline to avoid penalties and interest. Try to be as accurate as possible when estimating your tax liability.
Make your SEP and IRA Contributions
The deadline to contribute to a SEP or an IRA generally coincides with the tax filing deadline (typically mid‑April). Make contributions before you file so you can claim any applicable deduction on your current tax return.
Organize Financial Documents
Your tax preparer may organize your receipts and paperwork for an extra fee. Instead, gather and sort your documents yourself to save money and speed the process.
- Proof of income.
- Business expense receipts.
- Bank and credit card statements.
- Other paperwork that details income and expenses.
Once you collect all financial documents, create separate files for income, office expenses, insurance premiums, mileage, and other categories. Collate documents by date or calculate totals for each category to make reporting easier.
Double Check Income
The tax authorities focus closely on business income accuracy. Review your income records to ensure you have documentation for every amount reported and that nothing is omitted from your return.
Hire a Bookkeeper
You can handle tax preparation yourself, but hiring a bookkeeper can save time and reduce errors. A bookkeeper can sort records and create reports that simplify your preparer’s work. If you need industry‑specific insurance information as you review expenses, see Plastics Plumbing Fixtures Coverage.
Note Tax Prep Improvements for Next Year
As you prepare to file, consider ways to improve the process next year: schedule monthly time to sort receipts, use a better mileage tracker, and shop around to lower business insurance, rent, or office supply costs. These steps will make next year’s tax prep easier.
For examples of insurance options you might compare when reviewing expenses, see Plastics Bottles Insurance.
Relieve some stress during tax season by performing these last‑minute tasks in March. They simplify tax preparation and help you file an accurate return. If you need additional assistance, talk to an agent.
Frequently Asked Questions
What if I can’t finish my return by the deadline?
You can file for an extension to get more time to prepare your return, but you should estimate and pay any tax owed by the original deadline to avoid penalties and interest.
When are estimated tax payments due?
Estimated tax payments are due on quarterly deadlines; make payments by each quarterly due date to avoid penalties for underpayment.
Can I contribute to an IRA after the tax year ends?
You can generally contribute to an IRA up until the tax filing deadline in the following year, allowing you to claim the deduction on that return if eligible.
How can a bookkeeper help my tax preparation?
A bookkeeper organizes records, reconciles accounts, and produces reports that reduce the time and cost of working with a tax preparer.