The Ultimate Guide to Tax Preparation for Small Businesses
Tax season doesn’t have to be stressful-especially if your bookkeeping is in order. With the right approach, you can minimize surprises, reduce your risk of penalties, and potentially even increase your deductions. Whether you’re doing taxes yourself or working with a CPA, preparation is key.
Download Our Free Brochure →This ultimate guide will walk you through everything a small business needs to prepare for tax season, from gathering documents to submitting filings.
1. Organize Financial Records Early
Don’t wait until the last minute. Organize the following:
- Income and sales reports
- Expense receipts
- Bank and credit card statements
- Loan documents and payroll records
Tip: Use cloud-based bookkeeping software or partner with a monthly bookkeeping service to automate this step.
2. Separate Deductible Business Expenses
Many small businesses miss deductions simply due to poor documentation. Examples of deductible categories:
- Office supplies
- Equipment
- Mileage and travel
- Utilities and rent
Pro Tip: If you’re not sure what counts, Remote Books Online helps categorize and track deductible expenses for maximum benefit.
3. Reconcile Your Accounts
Your books must match your bank and credit card statements. Why it matters:
- Prevents overstatement or understatement of income/expenses
- Helps avoid audit triggers
Solution: If you’re behind, our Catch-Up Bookkeeping service can reconcile months (or years) of financials quickly.
4. Review Financial Statements
Get familiar with your P&L, balance sheet, and cash flow statement. These are essential for:
Download Our Free Brochure →- Filing taxes
- Understanding your profitability
- Presenting to lenders or investors
Bonus: Remote Books Online provides CPA-ready financials monthly, not just at year-end.
5. File the Right Tax Forms
Depending on your structure (LLC, S-corp, sole prop), you’ll need specific forms:
- Schedule C
- 1120 or 1120S
- 1065 for partnerships
Consult your CPA-or let us coordinate with your tax preparer.
6. Prepare for 1099s and Payroll Filings
If you pay contractors or run payroll, be ready with:
- W-2s for employees
- 1099-NEC for independent contractors
- Payroll tax summaries
Use Case
A real estate agent came to us in February with no bookkeeping for the previous year. Within 3 weeks, Remote Books Online delivered CPA-ready books, all reconciled and categorized. Their CPA filed on time, and they received a larger-than-expected refund due to properly captured deductions.
FAQs
What documents do I need for tax preparation?
You’ll need income reports, expense receipts, bank statements, payroll records, and loan documents.
Can Remote Books Online work with my CPA?
Yes. We deliver clean, CPA-ready books and can coordinate directly with your tax professional.
What if I’m months behind on bookkeeping?
Our Catch-Up Bookkeeping service can bring you current fast-even if you’re a year behind.
Do you offer ongoing support after tax season?
Yes. Our Monthly Bookkeeping plans ensure you’re always prepared.
Make Tax Time Simple-Start With Clean Books Today
Let Remote Books Online help you get organized, reduce stress, and stay compliant for tax season and beyond.
Schedule your free consultation or call 1-800-583-0148
If you’re behind on your books, our catch-up bookkeeping services can help you get current fast-no stress, no mess.
Stay organized and tax-ready year-round with our flat-rate monthly bookkeeping services.
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