If you aren’t an accountant, don’t be too hard on yourself if you do not understand all the ins and outs of tax accounting. However, being a business owner does require you to file an income tax statement for your business. It pays to know how to handle your receipts, bank statements, and other important documents that will be needed at the time of filing. 

Having topsy-turvy documents that are disorganized will be a nightmare for the accountant who does your bookkeeping. Don’t be the source of your accountant’s stress and headaches. Here are a few tips to follow to help your accountant file your income tax.

Accounting Tips that Will Help You Avoid Tax Time Traumas

Tax time does not have to be stressful. Making sure that all your files and documents are complete and in order is the first step in being successful at filing your business tax.

1 - Hire An Accountant Before You Open for Business

Some business owners make the mistake of waiting until after the business opens to hire the services of an accountant. The business will benefit from an accountant weighing in on a few key decisions about the business such as business structure, choice of equipment, and which software to use for accounting purposes are among some of these business decisions.

2 - Do Daily Bookkeeping

It will be much easier for you if you choose to do daily accounting rather than wait for the mid-year or end of the year to do your bookkeeping. You will not be expected to do all the work for the books, but it pays to have a general idea about where your business is at financially at all times.

3 - Organize Your Accounts Payable Tab

It is a good idea to reference each cheque and outgoing payment and tally them alongside payables so that you will know which accounts you have already paid and which have not. You may also organize all your payables into a folder that is alphabetically arranged. This way, you will be able to pull up information on any payable account when the need arises.

4 - Make A “Permanent” Accounts Tab

This folder should be created for files that will have a more-or-less permanent place in your accounting system. Examples of files that may belong to this tab are bank accounts, leases, and payments on equipment.

5 - Touch-Base with Your Accountant

It is a good practice to stay in touch with your accountant, even if it is not tax season yet. If you have any questions for them or if you encounter any problems it is best to have your accountant’s contact information handy to be able to contact them at a moment’s notice.

Conclusion

Following the above-mentioned steps will help you avoid being the client accountants hate to deal with. Keep in mind that filing taxes is not an easy feat, you can make the task easier by properly preparing the documents they need before they handle your books. The final note on this subject is to get organized. It is never too late to start organizing your books. If you have not been orderly in the past, you can always start now.

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