Ways to Prepare for the Tax Season

The tax season is one of the most dreaded times of the year for everyone, especially for business owners. Just thinking of filling out the forms can exhaust the life out of you.

But it doesn’t have to be that way every year. By simply following hese steps, you can lessen the stress and prevent penalties from late and incorrect tax submissions.

1. Get your finances in order

Two words – start early. The reason why most business owners are paying hefty fines for late submissions is because they are starting too late when it comes to getting their business finances in check. Get organized at the start of the game.  Once everything is in proper order and all things are accounted for, you will find that preparing for the coming tax season is not at all daunting.

2. Remember the schedules

Take note of the submission dates. If possible, set your preparation calendar a month or so before the deadline. You can notify your accountant or finance officer to get started early, so when the submission deadline is nearing, you can double check the forms and ensure that all numbers are correct. You can also make last minute changes if needed. It is also advisable to file them early to avoid the hassle or the long lines.

3. Understand how it works

The reason why filing of tax looks and feels so overwhelming is that you don’t know how it works. Get to know the system better and do the math yourself. It might be difficult at first but once you get the hang of it, it will be easier for you to prepare and do your own filing. You can ask a friend or your trusted accountant to show you how this works. Take notes if necessary, list income sources and get to know the forms.

4. Ask for extension

If worse comes to worst, you can ask for an extension. Inquire if your tax department gives extensions. Some countries allow this to encourage more people to file their taxes. Once you are given an extension, use your time wisely. Avoid cramming all the work over a short period of time.

5. Make your own system

Since you already know how it works, you can now devise your own system. Having your own will make things easier for you when you file your taxes the next time. Get to know what records you need to keep and what schedule suits you.