It’s that time of year again! If you are approaching your IRS filing deadline and dreading the accounting and bookkeeping, or not sure where to start, you’re not alone. Here are our 5 tips to reduce stress next tax season.
1. Know The Dates
Here are the key dates for the 2021 Tax Season:
- The IRS Tax Season opened February 12, 2021.
- April 15th is the deadline for filing personal tax returns.
- April 15, 2021 is the deadline to file corporate tax returns unless you request an extension
- October 15, 2021 is the final deadline if you requested an extension with Form 7004. You have to pay an estimated amount of tax.
Keep these dates on your calendar! It’s really just best to complete the accounting and the payment before the first deadline. Then you’re done!
2. Starting On Time or Early
To stop unnecessary stress and missing important deadlines, contact your accountant as soon as possible. In reality, we suggest meeting with your accountant as soon as possible after the end of the year!
This will assist you in getting ready, planning out the work, and completing it without stress. A formal Engagement Letter must also be signed by your accountant – this is a CPA provision. Getting this signed as soon as possible is key.
3. Bookkeeping done by a pro
Your accountant will need to know that the books are full and correct before beginning an accounting Year End engagement. Before continuing with the filings, the accountant must review the accounts to ensure that they are reasonable.
There will need to be a clean-up if the accountant notices apparent mistakes such as incomplete bookkeeping, negative expenses, balances that don’t fit last year’s filings, and so on. So get it done by a professional accountant or bookkeeper. Coffinity can help here!
4. Know about Government incentives or ask
There are some great R&D incentives and small business payroll tax incentives available to many businesses. Ask your accountant about them – it’s not that hard to apply and it’s there to support you.
5. Use good software and use it well
Don’t come to your accountant with excel sheets and a garbage bag of receipts. I hope nobody is still doing this. There are great accounting software tools available for startups and small businesses – QuickBooks Online and Xero for instance. And there are wonderful apps you can use to take photos of your receipts and upload them to your accounting software. Ask us at Coffinity – we’ll hook you up.