Tax preparation is a vital part of the success of small businesses but is often overlooked or treated as an afterthought. Staying on top of paperwork is just the tip of the iceberg when it comes to filing taxes for your business. Understanding the way your business is structured and the required forms you need to file during tax season can be confusing. Additionally, the way you fill out paperwork when filing your taxes can save your company a significant amount of money when done correctly. Since approximately half of the small businesses fail within the first five years, tax preparation can be a critical step towards stability and financial security.
What Tax Preparation Steps Should Small Businesses Take?
The tax preparation services Mesa businesses tend to rely on include using accounting software, properly tracking necessary expenses and other information, and hiring an accounting company that stays up-to-date on relevant tax laws and regulations that affect their business.
Preparing for Tax Season
How stressful tax season will often depend on the systems put in place the year before. Most small businesses use accounting software to make it easier to track expenses, but it is also important to consult with your accountant to see if there are any new tax laws that may require keeping records of additional information.
What to Expect During Tax Season
During tax season, tax preparation companies are extremely busy; hopefully, you will already have an accountant for your small business who can prepare both your business and personal tax returns. It typically takes less than three weeks for your returns to be processed by the IRS once they are submitted, but it can often take longer.
After Your Taxes are Filed
After your taxes are filed, you should keep all of your records and receipts for three years from the date of filing, or two years after you pay your taxes. If your claim includes a loss from worthless securities or bad debt deduction, you should keep your records for seven years. If you are unsure of what you should keep and for how long, consult your accountant. Your accounting company will also be able to assist you should you or your company be chosen for an audit.
Tax Preparation Services in Mesa, AZ
If you have a small business in Mesa, you may feel like accounting services are an unnecessary expense. However, an experienced accounting team can save you money in the long term, not only by preparing your taxes correctly so that you receive every deduction you qualify for, but also by assisting with bookkeeping, creating and tracking invoices, and ensuring that your company is using best practices that are legally compliant with federal and state laws.
If you are looking for an accounting team for your small business, or if you have a specific tax or bookkeeping question, contact the experienced tax professionals at M&M Accounting LLC.