Year-End Tax Preparation for Small Businesses

This being a holiday week, business could be a little slow. That makes it the perfect time to do some early tax planning and preparation. Following are three SMB tax tips to get you started:

1) Organize Your Books

As the year comes to an end, you should look over your accounting records. Are they up to date? Do the numbers add up? Do you have all your supporting documentation? This might include last year’s tax forms, a summary of expenses and expense receipts, bank statements and, if you use your own car for business purposes, you’ll need your vehicle log. Being more organized can help you take advantage of the deductions and credits that might be due to your small business.

2) Maximize Your Deductions

You only have a few days left to contribute to charities, buy office equipment or pay off business bills so that it affects your 2013 taxes. So go ahead and buy that new printer, desk chair or filing cabinet. There will be other office equipment to purchase and deduct next year. Tax deductions can make a big difference for your small business.

3) Contribute to Your Retirement Plan

Retirement savings are an important part of small business tax preparation. Yet just last week, USA Today reported that 40% of the self-employed are not saving regularly for retirement, and 28% are not saving at all. If you don’t have a retirement plan set up, there’s no time like the present. You need to start saving, and by starting before the end of the year, you can reduce your annual taxable income. If your retirement account is already set up, don’t forget to contribute the maximum amount allowed that your budget can afford.

There you have it! Three ideas to get you on the right path today toward a more pain-free 2014 tax season. Another way to help eliminate some of the hassle is with our 1099 and W-2 tax form kits. They include everything you need to easily file your taxes: the multi-part laser forms, transmittal forms, envelopes — even a tip sheet! You can choose from printed forms or software, and if you’re digitally savvy, there’s the 123Print E-File. It lets you electronically file your returns and then print and mail the recipient/employee copies. A one-click QuickBooks import application makes it simple, and there are no forms or software to buy.

Do you have any year-end tax tips you can share? Or we’d be happy to hear any kind of tax prep ideas that you’ve found beneficial. Please leave a comment below, or write on our 123Print Facebook wall or Google+ page. If you prefer, tweet us a link to a helpful article you’d like to share.