DAY 21-25 of 30 Day Reset for New Bookkeepers: Tax Prep & Compliance Know-How
Welcome back to day 21-25 of our 30 day bookkeeping reset! This week we’re tackling the crucial topic of small business tax preparation and compliance.
I want to equip you to confidently organize key client documents for filing season and stay updated on the ever-changing tax landscape that impacts your clients’ bottom lines. Mastering tax basics builds tremendous value.
Get to Know Tax Forms & Deadlines Brush up on the purpose of vital business forms like quarterly 941s, annual payroll filings, W-2s and 1099s. Understand due dates for each across federal, state and local jurisdictions. Set calendar reminders so no deadlines sneak up on clients!
Build an Intuitive Filing System Create standardized digital folders and simple naming formats for tax documents. Examples: “2023 Business Receipts,” “2022 1099 Payments,” “Q1 Payroll 941 Forms.” Logins should be securely stored as well. Make accessing paperwork easy when needed by CPAs.
Curate Critical Documents
Gather past tax returns, profit and loss statements, bank records, receipt images and anything related to deductible expenses in one location. Double check for accuracy. Bring up irregularities. Having paperwork accessible and audit-ready offers peace of mind.
Master Deductions, Incentives & Exemptions Learn what business activities qualify for enhanced write-offs, tax credits, accelerated depreciation or income exemptions. Strategic planning optimizes these. Keep eligibility thresholds handy as they change annually with inflation.
Guide Clients Through Process
Outline exactly what materials CPAs require and demystify next steps for finalizing filings. Offer to import key data to returns to alleviate grunt work for tax preparers. Explain results and projected payments upon completion.
Stay Apprised of Updated Tax Laws
Sign up for legal newsletters. Take continuing education classes on new rulings impacting businesses in your state. Keep clients informed if action is needed to comply with implemented changes so they avoid penalties.
I hope this overview has equipped you to better serve clients during stressful tax seasons! Taxes may seem mundane, but they severely impact small business survival. Mastering key compliance knowledge and organizational diligence sets you apart as a specialist. Let me know what tax topics you still find murky so we can tackle them