Although paying taxes is a must for every business, taxation can be a hassle for many people. There’s a lot of paperwork involved, and everything needs to be in order to work. Even the slightest error can cause a lot of trouble. So, it’s essential that you provide your accountant with all the right information and documents.
If you’re in the eastern suburb, you can reach out to the tax accountants in your region to help you with your taxes. However, to ensure that the entire experience is seamless, a bit of research is necessary. You need to submit some documents to your accountant so that they can get your taxation ready.
If you’re taking accountant services for small businesses in the eastern suburb, here are the things you need to give your accountant:
Things to Give your Accountant at Tax Time:
To begin with, you need to provide legal identification information for yourself as well as your business. Legal identification includes your name, address, contact information, and social security number. If you have your social security card, you should take it with you as well.
Along with your personal information, you need to provide information about your business as well. The name, address, and whereabouts of your company, along with other identification documents, are required. You need to provide your Employer Identification Number (EIN) to be eligible for accountant services for small businesses in the eastern suburb.
Previous Tax Returns:
Although this isn’t a must, this can make the entire process much more efficient. If you have tax records of your previous taxes, your accountant will better understand your business.
Furthermore, if you have former tax returns, it’s very easy to calculate how much profit or loss your business made in the fiscal year. This makes calculating tax for your current year much more comfortable.
However, if you’re a new business paying taxes for the first time, you don’t have to show previous tax documents.
Your income statement is the most important document of your business. It contains details of your yearly income and expenditure. The income statement should include how much your business made in the fiscal year and whether it was a profit or a loss. Your income will play a key role in determining your tax.
The balance sheet is where your assets are described. The liquid assets you have, as well as the liabilities, should be mentioned here. Furthermore, if you have any loans or rents that you have to pay, you should mention it in the balance sheet.
Make sure all of your investments that affect your business is mentioned in your balance sheet. Otherwise, it will cause a fair bit of legal hassle for you in the long run.
However, only mentioning assets or loans would not be sufficient. You have to attach relevant proof of your assets as well. These include bonds, receipts, loan documents, etc.
If you have hired employees, it’s crucial that you mention their payroll in your documents. Whether they have health insurance or not, the amount of money they receive, etc., are essential factors you need to look into.
You can currently use payroll management software to easily arrange the relevant data you’d need regarding your employees. However, if you don’t have anyone working under you, payroll information isn’t necessary.
Information on deductible expenses:
When you’re receiving your accountant services for small businesses in the eastern suburb, there are a few things you need to keep in mind. There are some expenses that are deductible from your taxes. These include:
- Home Office expenses;
If you have a home office, you can be eligible for some tax cuts. However, the home space should be used exclusively for your business purposes. Other residential areas wouldn’t be considered for the cut.
If your profession requires you to wear a uniform exclusive to your job, you will receive tax cuts on buying and cleaning your uniform.
However, this is a bit technical because the dress has to be exclusive to your work area. For example, if you work as a waiter and wear a shirt with the restaurants’ logo on it, you can receive tax cuts on buying and cleaning the shirt. However, if you wear a generic waiter’s attire that you can wear outside your workplace, you won’t be eligible for tax.
Furthermore, if you have to wear protective gear for your safety at work, the cost of your protective equipment will be eligible for a tax deduction
- Mileage and Travel:
Suppose your business requires you or your employees to travel to multiple places. In that case, you can receive a tax deduction on travel costs. However, you’d need a detailed mileage log for it. Make sure to calculate your mileage and record it correctly in a log that you can submit with other documents.
If your company makes a considerable amount of donations, make sure to bring receipts and proof for it. You might receive tax cuts and benefits for your charity.
The value of your inventory is essential in determining the amount of tax you’re eligible for. Do an inventory count of the amount of good you have in stock currently and the number of goods sold since the beginning of the year. You might also need to submit the Cost of Goods Sold (COGS) when you go for accountant services for small businesses in the eastern suburb for taxes.
Paying taxes is a complicated process. There’s a lot of paperwork and planning that goes into it. Therefore, getting your taxes done by a professional accountant is a good idea. However, even if you have professionals to help you, you’d need to get some work done.
It is recommended that you prepare some documents before getting accountant services for small businesses in the eastern suburbs. In this article, we’ve discussed these documents in detail. We hope you find them useful!