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Tax

Your 2021 Small Business Tax Preparation Checklist

By January 18, 2021 No Comments

small business tax preparation checklist

By this time of year, you’re not even thinking about 2020 anymore. Most of you are probably thinking straight into 2021 (that’s how growing businesses work, right? We certainly do.) 

But when it comes to taxes, it’s always going to feel like having one foot in a room where you’ve already closed the door. And who can keep up with that? We hear you, so here’s a quick snapshot checklist (with a few pro-tips thrown in) to make sure you’re not solely focused on paying your taxes from last year, but on the growth ahead.

Ready to get started? 

Step 1: Mark Your Calendar

There’s more to tax season than just one business tax deadline. Take a look at these dates, and jot down any that are relevant to your business’s tax needs.   

January 15: Final 2020 estimated tax payments are due.

February 1: Deadline to send W-2 and 1099-MISC forms to employees and independent contractors

March 15: Deadline for partnership and S-corporation tax returns.

April 15:  

  • Deadline for C-corporation, sole proprietor and individual tax returns.
  • Deadline for 2021 Q1 estimated tax payments.

June 15: Deadline for 2021 Q2 estimated tax payments

September 15: Deadline for 2021 Q3 estimated  tax payments

P.S. We have a free small business tax calculator to help you with your quarterly estimated tax payments. 

Step 2: Consider an Extension

Tax extensions aren’t for everyone, but it may pay off depending on your unique situation. 

You may benefit from a tax extension if:

      You don’t have all your documents and information ready

      Your small business return has not been completed yet

      Upcoming retirement funds could be deducted from 2020 taxes

Whether you extend your return or not, your tax payment is due to the IRS by April 15. So, why consider an extension? If you’re late without an extension, you’ll owe the full payment as well as interest. By choosing to extend, you can avoid penalties and interest rates.

September 15:  Deadline for partnership and S-corporation tax returns after extension.

October 15:  Deadline for C-corporation, sole proprietor and individual tax returns after extension.

Step 3: Pick Your Tax Services

Taxes can feel overwhelming, but you don’t have to go it alone! Acuity offers plenty of resources to simplify your to-do list and set your small business up for success.  Plus we partner with the best small business tax software companies out there. 

Cleanup

Even if you’re not as organized as you’d like to be, you can still make the most of your tax return. We’re here to help you with bookkeeping cleanup, so you don’t have to worry about details from your invoices and statements getting lost in the shuffle.  

Tactical Bookkeeping Support

Let our team work behind the scenes to ensure you’re ahead of the game. While you’re working, we’ll put together financial reports and up-to-date, tax-ready books. We work proactively to prepare taxes without involving business owners — so you can enjoy a simple (and paperless!) experience. 

Compliance

It can be difficult to keep up with any new tax laws for small business. We’re here to keep you informed and help you stay compliant. 

Our bookkeeping services and our tax services are connected, so you can be sure that everything is running smoothly. Pairing these services improves tax estimated payments and systematically tackles tax planning strategies to make sure they flow through your personal tax return — so you can maximize your tax savings.

Analysis

Work with an expert to make sure you’re ready for success. Our dedicated controllers are here to help you build accurate budgets, streamline workflow processes, and address complex accounting issues like deferred revenue and GAAP-based accounting.  

Strategy

Our chief financial officers are experienced leaders who know how to manage mergers, acquisitions, funding challenges, and more. By working with an Acuity CFO, you can be confident that you’re making sound decisions for your business’s future.

Step 4: Use Your Return Wisely

Choosing the right services for your business saves you time, money, and energy (something that’s much better focused on your passions). We offer a handful of options, ranging from quarterly services to daily services. Every business is different, so take a moment to see what’s best for you.   

Taxes don’t have to be complicated to make them as simple as possible for busy business owners like you.