As tax season approaches, it’s crucial for business owners to be well-prepared with all the necessary documents and information. In this insightful discussion between Danielle Hayden and Kelsey Chester, we explore the key considerations and tips to ensure a smooth and stress-free tax season.

Understanding Tax Essential Documents

Business owners are urged to take responsibility for gathering all relevant documents, as tax preparers may not be aware of every aspect of their financial situation.

In episode 153, Danielle and Kelsey emphasize the importance of having certain documents ready for tax preparation, including:

  • W-2s and K-1s: Documents reflecting financial information from businesses you own or have ownership in.
  • Interest Earned and Received: Especially from high-yield savings accounts, requiring a 1099-INT form.
  • Interest Paid: Such as mortgage interest, potentially deductible if itemized.

Checking off items and ensuring all necessary documentation is obtained is crucial to avoiding any missed deductions or potential issues. At Kickstart Accounting Inc., our team sends a checklist of documents you may need to provide to help jumpstart the process.

Proactive Communication

It’s recommended that business owners communicate openly with their tax preparers about any new financial activities or changes since the previous tax year. Report new financial endeavors like opening high-yield savings accounts is essential to ensure accurate tax reporting.

Other important documents include records of taxes paid, and specific documentation related to buying or selling a home.

Help your bookkeeping team keep you compliant with IRS regulations by sending updates when your information changes and responding to emails in a timely manner.

Mental Preparation

Tax season can be stressful, but having a supportive and communicative relationship with your tax preparer can make the process smoother and less daunting.

As you gear up for tax season and beyond, ensuring your financial affairs are in order is paramount. With the guidance and support of Kickstart Accounting Inc., you can strengthen your money team and navigate the complexities of tax preparation with confidence.

Need support?

Book a call today to start proactively preparing for tax season and securing your financial future. Don’t wait until the last minute—take charge of your finances now with Kickstart Accounting Inc.