| How much does it cost for business taxes to be | | | | books after a tax return is done!) |
| prepared at the end of the year? Are you paying too | | | | - You don't have a large Undeposited Funds balance. If |
| much? Before shopping around for a new accounting | | | | you do, then go and complete the "deposits" that are |
| service, first take control of some money saving | | | | unfinished or make sure there are legitimate reasons |
| activities that you can do yourself RIGHT NOW to | | | | that can be identified. |
| save your business money. | | | | - In your chart of accounts the Sales Tax Payable |
| Here are 10 quick double checks to ensure that your | | | | account equals the "amount due" for your next sales |
| tax preparation bill doesn't cause you to pass out. | | | | tax return. If they do not match check the transactions |
| Before turning your financials over to your tax | | | | in your Sales Tax account in your accounting |
| accountant, make sure... | | | | software compared to your filed sales tax returns to |
| - All of your bank accounts (and credit card | | | | see where you may have over or underpaid during |
| statements) have been reconciled. Reconciling is a | | | | the year. |
| hassle sometimes, but if your team does it in-house it | | | | - Your total Salary expenses = the total of all W-2s |
| can save you a lot of tax preparation time. | | | | Box 1. |
| - Your Accounts Receivable does not have a credit | | | | - You prepare Forms 1099s to your non-corp vendors |
| balance (that means a negative total). | | | | (who you paid >$599). |
| - If you bought equipment this year, then your Fixed | | | | - You reconcile your State Excise tax return gross to |
| Assets should have increased. Check that your assets | | | | your gross income. In your accounting software run a |
| in your accounting software accurately show that | | | | report for the year to see what your gross sales |
| increase. | | | | were (note: if you file on a "cash" basis then run the |
| - To run a Last year / This year Comparative Balance | | | | report on a "cash" basis, and if you file on "accrual" |
| Sheet if you have a partnership or corporation. Last | | | | then run the report on "accrual") |
| year's numbers should equal those on your tax return. | | | | - You haven't comingled personal and business |
| If they don't something has been edited and your tax | | | | expenses or receipts. |
| preparer will have to spend time (and your money) | | | | These ten tips ought to put you in top shape for a |
| looking for that. Possibly you can drill down the totals | | | | smaller business tax preparation bill this time around. |
| before then see what balances had changed and | | | | Good luck! |
| why. (Never make changes to a previous year's | | | | |