The Importance Of Bookkeeping In Small Business Tax Preparation
When it comes to tax preparation, there can be no doubt that professional bookkeeping services are an asset, for all manner of small businesses.
Outsourcing your bookkeeping requirements all-year round, and proactively working with a tax preparer, means that when it’s tax season, nobody could be more up-to-date and prepared than you! No more rushing around trying to find records and receipts, or searching online to check for deductions, and perhaps most importantly, no more tearing your hair out trying to satisfy the IRS!
Do bookkeeping services in Miami file your taxes for you? Well, no. But with their help throughout the year, and planning from your tax accountant well in advance of tax season, you can achieve tax-readiness and optimize all deductions that you’re eligible for. In short, you could save big on your tax bill, and save yourself a whole bunch of time and stress, too.
Small business bookkeeping services
Basically, bookkeeping services keep your expenses and revenue records updated and organized by:
- Recording all transactions that are financial
- Reconciling monthly bank and credit card statements
- Managing accounts payable and receivable
- Preparing financial reports such as balance sheets, and P&L
- Tracking expenses eligible for deductions ready for the tax preparer
- Maintaining organized receipts and other records for tax filing purposes
Small business tax preparation services
Just as a bookkeeper does, tax professionals carry out tasks involving financial records, but with a focus on taxes and the preparation of business taxes. Their responsibilities typically include:
- Guiding small business owners through the process of tax return preparation
- Collating financial records necessary for an accurate tax return
- Ensuring clients pay accurate local, state and federal taxes
- Filing taxes
- Representing clients before tax agencies if required
Why is bookkeeping so essential to effective tax preparation?
With a bookkeeper and a tax preparer both working together and in your best interests, you’ll be rewarded with a comprehensive and accurate picture of your businesses financials.
Bookkeeping keeps your financial records maintained and organized throughout the year, with deductible expenses tracked, transactions categorized properly, and audit-ready books before tax season deadlines. As you might expect, a tax preparer works to secure deductions and/or credits that you may be eligible for, file your return accurately, on time, and in full compliance with all tax laws.
When combined, bookkeeping and tax preparation prove invaluable; an investment with a great return.
Can you tackle your own bookkeeping and tax preparation?
As a small business owner, nobody can stop you from handling your own bookkeeping and preparing your own taxes, but without expert knowledge and the latest insights, you’ll likely find that it consumes a lot of your mental and physical energy.
If you have the time to spare, and believe that you can file your taxes in a more financially-efficient manner than an experienced tax preparation service in Fort Lauderdale, you have every right to go ahead and do exactly that. However, you may want to ask yourself why it is that as a small business owner, you have quite so much time on your hands…is it because you’re neglecting other important areas of your business that could enhance profitability and support sustainable growth? Quite possibly.
Ultimately, bookkeeping and tax preparation services combined can get you tax-ready, and keep you that way, all year-round. No more hunting around for documents, trying to tally up the figures, or rushing to meet deadlines. And no more tax season headaches! Wouldn’t that be a relief.