How to Make Filing Your Income Taxes Easier For Your CPA

It’s tax season, and if you’re like most small business owners, you are probably beginning to feel overwhelmed just thinking about all the things you did in 2016 that you may or may not have recorded.

Despite how overwhelming it may feel there are tips which you can utilize to help alleviate the stress which often follows tax season. Here are some ways you can make filing easier for your CPA.

Compile and organize all your records

While it can be easier said than done, make sure you organize and compile all your records. If you are tech savvy, keeping a digital record of your expenses can make your accountant’s job easier. If you’re not so tech savvy, make sure you keep all your files in organized folders in order to ensure that they are easy for your CPA to navigate.

Report all of your income

If you learn how to report all of your income, you will never have to worry about how to protect hidden income. If for some reason you’re not completely sure if you should report it, report it. It’s better that you over report than under report.

Make sure your deductions are correct

Aside from forgetting about any additional income you may be bringing in, more filers do not include all of the deductions to which they are entitled. This could include office supplies, computers, hardware, business trips, out of home client meetings, and others. If you’re not sure if something qualifies for a deduction, don’t be afraid to ask.

Know the difference between tax deductions and tax credits

While tax deductions and tax credits are similar, they are not identical. Tax deductions lower your taxable income, and tax credits help subtract against your tax liability.

Knowing your filing status

Your filing status will determine the rate at which your income is taxed. Knowing your filing status before you file is important because your status affects everything else about your tax situation.

What other tips do you think have been important to keep in mind in order to help your CPA file your tax returns? Leave your comments below.

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