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Get a Head Start on Taxes

Tips for getting your records in order and preparing for the tax season
February 10, 2010
URL: http://www.entrepreneur.com/article/204938

With the April 15 tax filing deadline looming, now is the time for business owners to get a jump on tax preparation and begin organizing receipts from 2009. Whether you are an independent contractor or a growing small business, giving yourself ample time to prepare your tax return can help curtail errors and provide you more time to properly identify deductible items that may be overlooked if you're rushed.

First, it is important to have a central repository for your records such as expense receipts, bank statements, and other important documents. Start by making sure everything is accurate and up-to-date, and that your records and documentation are clearly organized.

It is also critical to be clear on which items are deductible for your business. If you are the owner of a for-profit business, expenses considered "ordinary and necessary" to your trade or business may be deductible. These expenses may include items such as rent, salaries, interest on a loan for business activities, and certain taxes directly applicable to your business.

Once you've gathered your records, the following tips to help you prepare for tax season:

Getting a head start on your taxes will give you more time to find the best tax preparer to suit your needs without having to scramble at the last moment. When it comes to taxes, it's best to take your time and make sure you are filing correctly and claiming the proper deductions.

The foregoing article is intended to provide general information about tax preparation and is not considered financial or tax advice from Union Bank. Please consult your financial or tax advisor.