Is Your Business Ready for Tax Season?

Article details provided by Paul Wannemacher,CPA, PFS, CFP® VP, Senior Trust Officer & Financial Planner

Tax season is upon us, so it's time to get organized. Whether you have a company accountant or use a third-party tax service, you'll need to gather information, such as income statements, balance reports, and cash flow documents. Your business model will determine what tax rules you're expected to follow. For example, is your business an LLC with one owner or multiple partners? Is it a corporation? Those answers will affect how you expense particular finances.

You'll need the following paperwork and documentation:

• Taxpayer ID number from the IRS for the entity or entities involved.
• Last year’s tax returns and records.
• Income statements, balance sheets, and cash flow statements.
• Capital asset logs - what was added, removed from service, expensed, and amortized.
• Invoicing records to customers or clients.
• Records of goods and service sales.
• Expense reports, including employee salaries, office supplies, mileage and travel records, and rent if you don’t own your building.
  
  

Depending on your company, your personal and business finances may have some crossover, which can affect the complexity of your filing process. It’s crucial that you and your tax advisors understand applicable deductions and credits available to your business and that your recordkeeping helps, not hinders, your tax compliance process.

At Croghan, we assist business owners with financing business needs, generating income, and understanding how their businesses can improve. Contact your Croghan commercial lender to start a conversation that can lead to more than a smooth tax season - a smoother-running business.