Why are we talking about taxes with tax season so far in the future? Can't we find a reprieve from taxes? Well, as the old saying goes, the only certainties in life are death and taxes. Therefore being prepared for something inevitable isn't being premature or overly ahead of ourselves, it's simply being as organized as we can. The tax filers who wait until the month their taxes are due will find themselves with CPAs that are swamped with other individuals doing the exact same thing. To avoid the "lines" and being treated as a low priority that come with last minute filing, try getting in touch with your tax service when you both have time to discuss your taxes. Plus this avoids the awkward conversations where your CPA asks for items you have long since forgotten about or thrown away. This allow for maximum buffer time so the dreaded tax extensions do not need to be filed. Additionally, if you run a business in Colorado or Fort Collins, taxes can be a really complicated pain in the neck and so getting them started or even close to being ready this early means peace-of-mind down the line.
Preparing for taxes in the "offseason"
1. Save important receipts. With tax season far off in the distant future, many of us still forget to save their important receipts. the occasional forgotten business lunch is no big deal, but if your company just purchased 10 new computers for your workforce, those need to me noted and what better way than a receipt. Digital is often better in this case because it can be more easily gathered and handed over to the CPA.
2. Keep your documents handy. This is more true if you own a business because it comes with a lot more paperwork. If your CPA did your taxes the previous year, this is less of a priority because they have 90% of everything you would need to send them, but starting out with a brand new CPA in Fort Collins means they will need to have access to important business documents. Just like receipts, don't forget to keep these in one place.
3. The previous year's tax return is critical in helping your tax service more easily estimate your amount due or refund for the future filing years. This will be less relevant if your business absolutely exploded in size or your are now making so much more as an individual, but generally, these previous tax filing documents or tax returns help chart a roadmap of future amounts owed or tax brackets.
4. Plan ahead! Once you are all set up with an accountant or CPA, it should be easy to see what this years taxes will look like. Now you can plan ahead with the potential tax return or save for potential amounts owed. This allows the individual and the business owner to not be blindsided the month taxes are due, and maybe even make adjustments to avoid hefty bills from the IRS.
5. Hire an Accountant. We've talked about this previously so we won't go into too much detail, but the accountant services will take care off taxes without you ever having to worry and they begin preparing for tax season on day 1! Sometimes they can even help navigate difficult financial issues to ensure taxes are a breeze. Also, it can be a huge boon to have a professional set of eyes looking over financial data.
We know it is early, but it's never the wrong time to start readying yourself or your business for the annual tax season. The IRS certainly doesn't sleep! Call Geyer & Associates CPAs in Fort Collins to begin preparing. Don't wait until the last minute.