Now that tax season has come to a close, you’re probably ready to take a load off and relax. But don’t get too comfortable! Now is the ideal time to prepare for tax season next year. Remember that everything that you do now impacts next year’s filings. By beginning to plan and strategize now, you’re setting yourself up for smooth sailing.
Here are some ways to make your 2023 tax season go off without a hitch:
Review your records
Get a good understanding of how your 2022 tax season went. Were there any specific challenges that you faced? Go back and take a look at your taxes and take note of the areas that caused you the most issues. What can you do better moving forward to improve your process and outcome? Now that tax season is over, set aside some time to consult with your tax CPA to see what changes you should consider making.
Keeping your books up-to-date and records in order – including, receipts, invoices, checks, credit card statements, and bank records – is essential to scaling your startup. And back to your taxes – staying organized also comes in handy during tax season.
In addition, be sure to keep your personal and business expenses separate. Doing so will make for a smoother process when claiming tax deductions or credits, or if your business were to get audited. Using platforms like Expensify in addition to a business bank account will keep things in order.
If you’ve been struggling to stay on top of your books, consider working with one of our outsourced bookkeepers.
Familiarize yourself with changes to tax laws, deductions, and credits
Having a solid understanding of what tax bills, deductions, and credits are going to be available to you will give you some insight into how to maneuver when it comes to your business.
A great example is the Tax Cuts and Jobs Act that went into effect in December 2017. This bill changed both individual and corporate taxes, impacting many filings for 2018. Whether you’re thinking about starting a business, restructuring, or analyzing your current setup, educating yourself on your tax filing options now will give you time to prepare.
Prepare for estimated taxes
Know your tax obligations. Depending on your business structure, you may be responsible for paying quarterly estimated taxes. Familiarize yourself with the due dates for each quarter and take the necessary steps to calculate how much you will owe.
Remember, tax season doesn’t have to be as stressful as people tend to make it. You can make your life much easier by getting your ducks in a row now.
Outsource with our dedicated team
Tax laws change all the time, and so does your business. Having a trusted tax accountant and bookkeeper on your side will help keep things in order and prepare for the coming months. Reach out today to learn more about how Acuity can handle your finances year-round without any hassle.