Preparing the documents for your business taxes could be a daunting task; therefore hiring a tax return accountant is a wiser way to save time and create peace of mind this tax season.
During the tax season, you have to be ready with all documents that you have to provide your small business accountants or tax return accountant.
But what these documents are?
In this blog, we’ll talk about certain information that your accountant Melbourne would need to file your small business taxes.
Identity related information
To prepare your taxes, your tax return accountant requires some details related to your identification from you which may verify that are the exact person who you are saying. Your small business accountant will need your the social security number of each member of your dependants. Each year, IRS sends back numerous tax returns as the names and numbers on social security form don’t match. You could also have to show a second form of identification such as a driver’s license, any picture card issued by a state, or military ID.
Recent Tax Return
You could not be qualified for similar tax deductions just like last year. You have to provide your small business accountant with the tax return of the previous year that may assist him to easily access the information and claim some deductions for you without calling you again and again. If you are meeting a new tax return accountant, this could be an opportunity to discuss any discrepancies that could exist between prior tax returns.
Statements of taxes and wages
The employers receive a Form-W2 wage and tax statement. If an employee does not get this document from their employers by January 31st, they must check to assure that nothing has been mixed up. For independent contractors and freelancers, they must get a Form 1099-MISC from their clients they worked with throughout the year.
Other Income Statements
Did you get other sources of income during the whole year? You could have accrued some interest and dividends income from investments, social security income, or unemployment income. You must get statements for every source of income that you would need to take into consideration of your bookkeeper doing bookkeeping for a small business.
Documentation of Real Estate holdings
You could be eligible for a number of deductions if you have real estate holdings. Get any document that shows the latest home purchase, home equity loan interest, proof of paid mortgage, or personal property tax paid.
Data on Stocks and Bonds
Gather all the information that your business has gained or sold during the complete year. You may also have to present a record of the owner’s investments made to withdraw from the company during that year. Our bookkeeping for small business experts recommends you contact the tax return accountant directly before the tax appointment to see if there is any information missing they need.
Payroll Data
Your tax accountant will require your payroll data from the year. Take the health insurance records or any other information related to the bonuses. Payroll software makes this information available instantly. To gather important payroll information, try to use the best software for the next season.
Information on Deductible expenses
Many of the business expenses need more than just the receipts. If you have any plans to claim any of the following deductions, ensure to take the relevant information to your agent doing accounting services or bookkeeping for small business:
Home Office deductions
If you owe a separate home office that is used for your business only, you could be eligible for a home office deduction. This deduction is investigated by the IRS. Due to this reason, ensure that you have proper documentation. Efficient tax accountant Melbourne suggests you:
Mileage Log – If you make use of your vehicle for business purchases, you could also be eligible to have a vehicle deduction. Assure that you track the mileage the whole year and bring this log to your tax return accountant or other professional doing bookkeeping for a small business.
Travel – The businesses may even write off their travel expenses or meals. This deduction could also fetch a red flag for an IRS audit and depends upon whether the expense is basic or luxurious. Due to this, ensure to bring the receipts and travel ticket itineraries to your tax appointment.
Donations – Ensure that you bring all the documents related to donations made by your company, including receipts and statements that you may receive.
Come to your tax return accountant completely prepared
Whether you are doing your taxes yourself or hire an accountant Melbourne, keeping good records will save abundant of your time and money as well. The earlier you initiate the process, the sooner you’ll keep the process for next year ready.
If you need any advice from experts please contact Reliable Accounting Services and meet their accounting services professionals, we also provide the best guidance on the Melbourne bookkeeping system.