Ready, Set, Tax Time! How to Prepare Your Books for Tax Filing

Tax season is quickly approaching and with only a few short months left to prepare your business for filing, you may be stressing! It’s never an easy task to prepare your books, so we’ve compiled a simple outline to help get you on track for tax time.

– Organize Your Financial Records
Start by compiling and organizing invoices you sent to customers, receipts, bank, and credit card statements. Now is also the time to review any outstanding invoices and collect on that debt.

– Separate Personal and Business Expenses
Comingling business and personal expenses may result in you being held personally liable for your business’s debt and financial standing. We recommend reviewing your transactions to determine if the expense was personal or professional.

– Review Your Expenses
Once you have all of your records organized, you should take the time to review these expenses and determine your deductions and credits. We suggest hiring a tax professional to review your records and advise you on which business credits and deductions are right for you.

– Reconcile Bookkeeping
Next, head to your accounting software and reconcile expenses with your bank statements. This is one of the most crucial steps in preparing for tax filing, so be sure to take care when matching records!

– Collect Tax Forms
Managing and collecting the forms you need to file for yearly income taxes ahead of time can save you a lot of headaches. Access IRS tax forms and determine which forms you’ll need for filing here.

If you need assistance preparing your books for tax filing, reach out to us at