When the tax day is round the corner, you keep on worrying about the taxes. You either go to a professional CPA or put your data into the taxation software. But, you need some time to gather all the necessary tax documents. You have to give an insight into your business, income, and expenses on time to the professional to get your taxation done.
In this blog post, we will share a list of documents that you must keep handy for a successful tax day.
Gather Necessary Documents
Take a file folder, caption it, and put it safely. Add all the necessary documents into the folder. Your Birmingham accountants may advise you to keep the following documents:
- Business tax return of the last year
- IRS tax statement (if any)
- Copies of other tax statements (like 1099)
- Profit & Loss Statement, Balance Sheets, Payroll Documents, or other necessary documents for your business
General Information About Business
Your Birmingham tax accountants may advise you to be ready with your general information about the business, such as:
- Business Name
- Business Address
- Business Incorporation Date
- EIN Or Social Security Number
- Your Business’ Assets
- Method Of Accounting
This information is very vital for the tax filing procedure.
Whether you are filing a tax return on a personal or corporate level, you must have your income statement with you. Your Birmingham accountants will instruct you to gather information related to your income, including:
- Gross Receipts
- Any Sales Return Or Discounts
- Interest From A Savings Account
- Capital Gains
- Other Income
Record of Deductible Expenses
Presenting your deductible expenses will cut down your taxable income. Some of the deductions that you must submit to your Birmingham tax accountants are:
- Office Supplies
- Employees’ Wages & Salaries
- Formal fees
Examine Your Accounts
Lastly, you must examine your book of accounts like the Profit & Loss Statement and Balance Sheet. It will enable cross-checking of the documents before filing your taxes. It will also assist you to apply for applicable deductions. Moreover, you should check for your provisions and reserves. Make sure that you present the tax payment of the previous years.
Therefore, these are the essential things that you must keep in mind before filing taxes. Get your books of accounts checked by a professional CPA to avoid penalties. Now, you don’t have to worry about what to carry on your tax day.