What Do I Need to Give My Accountant for Small Business Taxes?
Here at Numerico in Livonia, MI, we’ve seen many complicated accounting and small business tax preparation situations over the years. We know just how overwhelming tax season can be for the small business owner. Given the unique circumstances surrounding 2020, we expect this year to be even more challenging than usual. The business taxes connected with the Affordable Care Act/CARES Act and the PPP Loans can be a minefield.
That’s why we want to help. Minimizing business taxes to improve profitability is our number one priority at all times. We’ve put together a checklist that can help find all your small business tax deductions.
Small Business Tax Preparation Checklist
If you are filing business taxes this year, take heart. Numerico understands the stresses caused by tax preparation, and we’ve got your back. The following checklist for small business taxes will help you get everything to ensure your tax burden is as minimal as possible.
- Find out which business tax forms you’ll need to submit. You can easily find this on the IRS Forms and Instructions for Filing and Paying Business Taxes page.
- Gather your profit and loss report (or income statement), balance sheet, and statement of cash flow. You will need all of these at the very least.
- Pull any receipts you have for asset purchases and your mileage log or travel expenses, any other out-of-pocket expenses, and any 1099s received. Also, add last year’s tax return to this list.
- Meet with your bookkeeper to ensure your balance sheet is correct and all expenses are properly categorized.
- Collect all loan records (payments and interest), income records (bank statements, deposit slips, or sales invoices), and expense records (receipts, bills, and credit card statements).
- Make sure you’ve collected all your payroll information, including any health insurance information. Be sure to have all employee W-2s and W-3s and that you have issued 1099s to all employees or contractors as needed.
- Note any changes in business ownership and any changes to business stock and bond ownership.
- Deduct any estimated tax payments you’ve made during the year.
- Schedule a pre-appointment call with your tax preparer to review your documents and preparations. Also, be sure to provide all the necessary personal information they’ll need to file on your behalf. This includes business information and your business tax id if you have one.
- If you believe you won’t meet your filing deadline, now is the time to request a tax-filing extension if necessary.
Affordable Care Act Tax | CARES ACT | PPP Loan Tax
There are some government plans that are beneficial to small businesses but can also make tax accounting far more complicated. These plans can significantly impact your tax situation, making it crucial to speak with a professional accountant, such as the ones found at Numerico.
Understanding the Affordable Care Act/CARES Act and the tax implications can potentially save your business a considerable amount in tax credits. The IRS Small Business Health Care Tax Credit and the SHOP Marketplace page explain how you can save up to 50% of the premiums paid in 2020.
Any small business that received funds from the Paycheck Protection Program (PPP) loans can expect added complexity when filing their business taxes for 2020. If you’ve never hired a tax professional before, this might be the year to consider it seriously. Contact Numerico and see how we can help.
Numerico | Your Small Business Tax Experts Livonia, MI
As a small business owner, you probably don’t consider the implications of taxes for small business throughout the year. You make your decisions based on what’s best for your business and your employees. However, as the year comes to an end, your attention will begin to turn to business taxes and how you’ll handle them in the coming months.
Numerico’s professional accountants come with decades of experience, and Numerico excels at assisting small businesses to keep more of their revenues as profits. The best solution is to give us a call and let our professional small business tax accountants help you with your tax burdens.