Many businesses get overwhelmed by the tax preparation process. Uncertain about the documents they will need in order to file, they often scramble around trying to piece together various records. What those businesses don’t know is that taxes do not have to be so complicated. The right tax preparations can make all the difference between a chaotic tax filing and a simple tax filing situation. The following checklist will help prepare your business for tax time:
Income
– Gross receipts from sales or services
– Sales records (for accrual based taxpayers)
– Beginning inventory (if applicable)
– Ending inventory (if applicable)
– Items removed for personal purposes (if applicable)
– Returns and allowances
– Business checking and savings account interest (1099 INT or statement)
Transportation and Travel Expenses
Local
– Business trip (mileage) log
– Contemporaneous log or receipts for public transportation, parking and tolls
Travel Away from Home
– Airfare or mileage (actual expense if drove)
– Hotels
– Meals and tips
– Taxes and tips
– Internet connection (hotel, internet café, etc.)
Additional Expenses
– Advertising
Commissions paid to subcontractors
– File Form 1099-MISC and 1096 as necessary
Depreciation
– Cost and acquisition date of assets
– Sales price and disposition date of any assets sold
Fringe benefits
– Employer-paid pension/profit sharing contributions
– Employer-paid HSA contributions
– Employer-paid health insurance premiums
– Cost of other fringe benefits
Business insurance
– Casualty loss insurance
– Errors and omissions
– Other
Interest expense
– Mortgage interest on building owned by business
– Business loan interest
– Legal fees
Office supplies
– Pens, paper, staples, etc.
– Other consumables
Rent expense
– Office space rent
– Business-use vehicle lease expense
– Other
Wages paid to employees
– Form W-2 and W-3 Federal and state payroll returns (Form 940, etc.)
Other expenses
– Repairs, maintenance of office facility, etc.