Yes, business taxes aren't due until mid-March, but 1099s should already have been sent and you should use February to gather the necessary business information for tax filing. Don't worry, our clients are covered and we're already leading the process for you. However, if you haven't found a financial partner for 2017, or if you're interested in understanding the tax information for your business, we're here to help.
We've listed the key pieces of information every business owner should have on file in order to file taxes properly and on time. For more, continue reading below or reach out to us directly by filling out our contact form.
1. Last Year's Business Tax Return
Previous year's filings help you understand such things as your federal ID tax number, your method of accounting (cash vs. accrual), dates of incorporation, inventory tracking method, shareholder or partner information, and more.
2. Articles of Incorporation
Your articles of incorporation help you with information such as a list of officers, a list of all shareholders, and the state of incorporation. Much, if not all, of this information can also be found our your prior year's tax return, but if you are a new company or don't have last year's returns, this document is very helpful.
3. Partnership Agreements
Again, much of this information can be found on last year's tax return. However, your partnership agreement can help you with things like total money invested by partners, details on income and expenses not allocated by profit, loss, or ownership percentage, and more.
4. Accounting Records
Make sure you have your accounting records closed for 2016 and on file. Your income statement, balance sheet, and statement of cash flows is the basis for your annual tax filings.
5. Bank and Credit Card Statements
Keeping a record of your bank and credit card statements helps you with deductions and expense categorization, both of which can decrease your tax burden.
6. Payroll Reports
These reports help verify that you paid the correct amount of estimated payroll taxes throughout the year.
7. Asset Purchases and Dispositions
If you bought or sold any assets throughout the year, you're going to want to have records of the transactions. This will help with any write-offs, gains, or losses.
8. Depreciation Schedules
If you own assets, it's important to understand how much of it has depreciated over the year and why. What method was used? This can help you lower your tax burden.