Tax Preparation Tips
Tips to reduce the stress of tax season. Have bookkeeping and accounting done correctly Keep your books correct, current, and in order in accordance with Generally Accepted Accounting Principles. Numbers from your accounting are used to prepare and file your business income tax return . Numbers on your business income tax return are used to prepare and file your individual income tax return . If your accounting is incorrect, all of your returns are also incorrect. You are also opening yourself up for an audit, possible penalties and interest on unpaid taxes, the need to potentially amend your past returns, in addition to simply not knowing the financial health of your business. If your numbers are off by too much, you may also be facing federal penalties and charges.