The month of march is plagued by analysts' commentary and PTO requests from coworkers calling in sick so they can fill out their brackets. It's the scramble and the hype that makes march full of such madness. Anything can happen--all bets are on the table with high stakes.
This is fine when we're chatting about basketball. Not so much when the madness spreads to your finances.
Many small businesses succumb to the madness when they realize they 1) haven't started thinking about taxes 2) realize they don't have accurate 2015 data for their taxes and 3) are paying too much attention to finding the right information for taxes that they forget about their day to day bookkeeping.
There's plenty of scrambling. There's plenty of hype. So how do you avoid mistakes during this busy time?
Receipts, bank statements, balance sheets. Make sure you've been organizing these items and stick to the filing system you've created for yourself. The more organized you are, the quicker you can line everything up for your return to be processed. Better yet, digitize them!
Send employees what they need before they ask for it.
You don't want your employees or contractors freaking out and filling your inbox with emails asking for their W2's and 1099's. Payroll systems like Gusto will automate the W2 process for you, which is a huge plus. Even contractors on Gusto are already taken care of. If you don't use this payroll system, at least have W9's on file for your contractors. That way, you can issue their 1099's and your employees' W2's early on in the new year.
Keep clean books throughout the year.
Playing catchup and trying to reconcile all of last year's transactions in March? Not fun. Nope. This is why it's important to keep things reconciled each month (which we do for our clients). You'll be able to have a better handle on your finances and likely more accurate reports. Your tax accountant will thank you for having accurate reports, organized books, and updated information. Better yet, just let us handle this for you if we're not already?
Set some money aside so you can pay on time.
Pay your taxes on time in the full amount. That's it! Plan ahead and make sure you have some money set aside for your tax payment. Be sure you know when you (read: your type of business) needs to submit your return. April 15th, sure. That's the deadline for Partnerships and Sole Proprietorships. Corporations (S Corp and C Corp) business returns need to be filed or extended by March 15th. Extended personal and sole proprietor returns are due October 15th, and the extended Corporation and Partnership returns are due September 15th.
Easy peasy, right? Don't let your small business succumb to the madness. And talk to us about keeping your books in order all year to make the tax process smoother!