{"id":4868,"date":"2015-04-07T10:59:13","date_gmt":"2015-04-07T14:59:13","guid":{"rendered":"http:\/\/planfoundations.com\/?p=4506"},"modified":"2015-04-07T10:59:13","modified_gmt":"2015-04-07T14:59:13","slug":"how-to-make-tax-time-easier-next-year","status":"publish","type":"post","link":"https:\/\/pioneerbusinessventures.com\/nsite\/how-to-make-tax-time-easier-next-year\/","title":{"rendered":"How to Make Tax Time Easier Next Year"},"content":{"rendered":"

How to Make Tax Time Easier Next Year<\/h2>\n

\"How<\/a>Isn’t tax time the most wonderful time of the year? Yeah, right. During tax season, I know some small business owners who amaze me with their ability to procrastinate. They cram weeks of tax preparation work into days. Tax time reminds me of college, when some people ignored studying and homework all semester long. Then, they would suddenly panic and start studying vigorously the night before the final exam. It\u2019s no surprise that some of these people are now in business for themselves. Maybe you know someone like that\u2026 What makes tax time so painful? Here are three of the top reasons: Writing checks to multiple government agencies<\/em><\/strong>. We know we must eventually write checks to multiple government agencies\u2014well, that just stinks. So we delay writing the checks, which unfortunately means we delay our tax work. While it makes sense to delay writing the check until the deadline, what are we doing to ourselves when we delay the tax preparation work too? Procrastination<\/em><\/strong>. Whether we\u2019re preparing taxes or studying, some of us need the pressure that procrastinating provides just to begin our work. If only we could find a way to procrastinate just a little less next year! Mandatory tax deadlines<\/em><\/strong>. We entrepreneurs generally don\u2019t like being told what to do. Hey, it\u2019s one of the reasons why we\u2019re entrepreneurs. Tax deadlines tell us what to do. The March 15th<\/sup> deadline (for corporate tax returns) and April 15th<\/sup> deadline (for personal tax returns) are non-negotiable, unless you want to pay late fees. We can, of course, file a request for a tax return extension (but not a payment extension) by completing the appropriate forms. But does an extension simply make us more compliant tax procrastinators?<\/p>\n

Tips for Beating Tax Woes<\/strong><\/h3>\n

Let\u2019s say that this tax year has been unusually painful, and you\u2019re promising yourself you\u2019ll do better next year. What do other small-business owners do to make tax preparation easier? Stay organized<\/em><\/strong>. Something as simple as maintaining a separate file for each major tax area can go a long way. Try focusing on bank statements, accounts receivable, inventory, accounts payable, fixed assets, and loans, to name the biggies. Keeping this information in its own special folder (paper or electronic) can provide some comfort, and even confidence, at tax time. Reconcile your bank statements<\/em><\/strong>. Accurate tax return preparation begins with a final year end reconciled bank statement. Otherwise the return must be redone. Since most of us need to know our cash on hand to operate our businesses, it makes sense to habitually reconcile each bank statement within a few days after the end of the month. Use tax software<\/em><\/strong>. Can you imagine preparing your tax returns manually? Forget about it. Find tax return software you like, so preparing your taxes can be easier and maybe even fun. You used to enjoy puzzles, right? The three top online tax software products for small businesses in 2015<\/a> were Turbo Tax, H&R Block, and Jackson Hewitt. Hire an accountant<\/em><\/strong>. If you truly detest numbers, or you feel you don\u2019t have time to do your own taxes, this is the best option for you. As a bonus, your accountant keeps you informed of tax deadlines well in advance. Anecdotally, working with an accountant you like makes the tax work\u2026 well, more enjoyable. Should you check your accountant? Heck yeah! It\u2019s OK to delegate your tax responsibility to a third party, but don\u2019t abdicate it like some of us do. A great way to check your accountant is to maintain a checklist. Keep a year-end tax-return checklist.<\/em><\/strong> This helps you manage your internal tax return preparation and your accountant\u2019s results. I suggest starting with a list of four items here:<\/p>\n