Tax Preparation Tips For Small Businesses 2023

All right today we're going to talk about tax prep tips for small businesses why because it's the perfect time of the year it's the beginning of 2023 we've just closed out 2022 and the tax returns are going to be due here shortly in April for 2022. So what do you want to do you want to get all your documents together maybe you have no documents but if you're using a bank account that can be the source of all the information that you need to prepare your tax return get your income together that would be all the deposits sort out the expenses if you have a bank account with a bank like Wells Fargo or Bank of America or a major Bank you can pull the information into an Excel spreadsheet and then you can sort all the transactions to make it simple for example you download all the transactions to excel you organize the transactions by the name and all of a sudden you see 12 Verizon transactions you can highlight them all there you have the total of your cell phone expenses Staples can be a transaction on your bank statements all your Staples transactions will be organized in order you highlight them there's your total for supplies you can simplify these things that seem like there will be daunting tasks by trying to streamline the process and not letting this linger and procrastinating that's the number one reason that people don't file on time is because they make this project more challenging than it has to be if you are trying to simplify it even more we always recommend that you get a software an accounting software for example QuickBooks where you can connect your bank account to the QuickBooks software and organize things throughout the year obviously a bookkeeper is nice depending on what type of business you're operating and how many transactions you have but to start I would say getting your paperwork together 1099s will be issued by the end of the month and should be coming to you early February getting all your income accounted for starting to tally up your expenses so you can put together a profit and loss statement all these things should be started now so that you're not scrambling last minute and you can focus on operating your business for 2023 in addition this is a good time to start considering what your estimated payments should be for 2023 so you don't owe if you have a tax liability for past years or you're going to owe for 2022 you want to start planning on how you can eliminate tax debt going forward for 2023 by making estimated payments and that starts by getting your year of 2022 in order once you get all your tax documents together what you have and if you have additional questions you can ask your accountant your preparer or whoever is doing your tax return the small ones you know don't get caught up on one particular transaction and put it off usually that's what happens so I don't know what to do with this expense I'll get back to it and then it becomes April 13th and the tax return is due in two days set it aside continue with the rest of your preparation contact or prepare lean on the person that you've hired to help you with this to simplify the process but that can only happen if you speak up and ask questions and that's what we do here is we really try to dig in to what the issue is what's stopping you from getting the information together and how can we streamline that process so those are the tips that I have for small businesses preparing for tax season you can get more information about tax prep tips and other information from our website victorytaxlaw.com we have blogs frequently asked questions you can even give us a call we'd love to hear from you at 800-883-8301