Dont Let Taxes Catch You Off-guard During Tax Preparation Season
Tax season is over so youve probably learned a few lessons about taxes and tax preparation
. And although some heavily rely on their accountants or a Certified Public Accountant Firm to do the job for them again next year, it doesnt hurt to get an early heads up on the next season.
Gather the necessary paperworkW-2s and tax forms will be coming in the mail. Be mindful of where you put them. Allot a folder or a drawer for everything tax related. That way you wont be scouring your house, car and office for crucial information. Start gathering up receipts and necessary paperwork that youll need to file your taxes.
Be ready for corrections. Tax preparation is a tedious job. Thats why people with no patience or skill for taxes get accountants; or they go to bookkeeping websites for help. However, even your accountant sometimes gets things wrong; which means you might have to run the papers through again. This is a normal routine for tax preparation. Certified Public Accountant Firms consider this an SOP for all clients. Making copies of all forms (payroll records, receipts, receivables, etc.) for the accountant is also critical, just in case something is misplaced. All copies should be kept in a safe place that is easily accessible.
In relation to human errors, here are some common mistakes that can sidetrack you from filing your taxes on time and hassle-free:
(1)Writing the incorrect TINmake sure that you wrote the correct 12 digit TIN on your form.
(2)Error in tax computationduring the computation for income taxes, some items should not be included for tax computation purposes. These are what are normally referred to as the reconciling items between the net income based on the financial statements and the net taxable income payable to the bureau. If youre unsure, get the help of an accountant or refer to Quick books Consulting. Aside from bookkeeping, Quick Books Consulting also helps you know which factors to add or deduct during the computation.
(3)Failure to sign formsthis is a common mistake for many people. A corporate annual tax return should be duly signed by two signatories: the president of the company and the treasurer, or in their absence by their authorized representatives. When the signatures are incomplete or there are no signatures at all, the tax return cannot be processed. The taxpayer will definitely get an invitation from the BIR to rectify matters.
Know what you need to file. Important stuff like payroll records, medical and dental records, interests paid or received, and investment properties are essential documents you should be saving. One way of making this task easier is to do monthly bookkeeping, especially if youre running your own company or small business. This makes it a lot easier for your accountant to keep track of everything youve been doing financially.
An obvious but usually taken-for-granted method is to start early and not procrastinating. Since tax preparation covers all transactions for the year, start from the very first month and not at year-end. To avoid unnecessary mistakes, resist the temptation of delaying tax preparation until the last minute. Lastly, get the help of the professionals. CPA firms and accountants are in abundance so help them by helping yourself. HC Tax and Accounting provides licensed accountants, bookkeepers, and provides Quick Books consulting for a more hassle-free tax preparation process.
by: Businesslocallistings
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