Particular portions of the business year inspire anxiety and tension for business owners. The IRS is demanding and necessitates complete order. Organizing tax records is not impossible but demanding.
Relieve in-house anxiety by keeping tax records and documents in proper order. Tax season is too late for organization.
Maintain tax return records as well as returns from the last three years. Keep bills, credit card receipts, mileage logs, canceled checks, and related material on file.
Regarding property, keep files of the last three years, as well as documents related to stocks and investments, office improvement, rental property, etc. Sites like TurboTax make it easy to file for one person or individual businesses, yet things get more complex as the business grows.
Small Business Owners
Keep employment records from four years prior. Maintain gross receipts, bank deposits, purchase and sales invoices, etc. Petty cash slips, real estate information, and receipt books need maintenance and order too.
Additionally, larger outfits use software and digital means to maintain files. The IRS needs information related to electronic databases, emails, saved files, instant messages, and faxes. A customer management system helps larger businesses instantly retrieve files and prepare materials for tax season.
Large Business Owners
Owners of larger outfits need to maintain all documents mentioned above in addition to licenses and proper documentation related to business model. Since larger businesses have more documents, it is easier to misplace files or fail to meet the demands of the IRS.
In addition to using outside resources or an in-house department, smart owners buy products that facilitate order and file maintenance. The Dymo Labelwriter 450 produces clear and legible labels in minutes while saving businesses on ink and toner costs.
Running a business makes owners susceptible to tax violations as well as a number of employee-related offenses. To protect yourself and business, hire a business lawyer and tax attorney that maintains records and ensures the business is operating in accordance with federal and civil laws.
Employee documentation must be kept for four years after tax due dates or payment, whichever is later. Human resource departments need instant access to employee files for reviews and assessments, so keeping an in-house system to aid HR needs makes documents accessible for tax season.
Lack of organization, not premeditated tax violations, accounts for a majority of trespasses. Organization is the key to success and anxiety-free business operations. Some owners have a head for business but no mind for organization. In-house employees may add to the businesses order along with helpful customer, banking, and operation related software.
Worst-case scenarios involve late filing and clumsy document retrieval. It’s best to file taxes early whenever possible. This gives owners a better indication of profits and losses as well as avoids future concern about pending violations and missing documentation.
The IRS likes to see that each business has its documentation and tax information in order, and accept zero excuses. With internal software, third party assistance, and handy office products, you’ll have no stress in April.
By Jemma Bratton
Jemma is always looking for ways to make her office more efficient. When she finds something that saves time or energy, she lets others know about it. You can read her informative articles on several websites and blogs.