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Avoid These Accounting Blunders Before Tax Season

Many errors occur in accounting, and you cannot ignore them entirely especially in case of filing tax returns. Why? IRS will directly knock your door for tax audit and may charge you penalties, more so, you may lose out all your time figuring out these errors. Watch this presentation and avoid these six accounting blunders that can trouble you while filing the tax return, protecting you from heavy tax duties.

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Avoid These Accounting Blunders Before Tax Season

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  1. -ACCOUNTINGTOTAXES- AVOID THESEACCOUNTING BLUNDERS BEFORE TAX SEASON www.accountingtotaxes.com

  2. Many people get worried during the closing days of the year anda week beforeApril 15. Why? Tax season is going toarrive! And if you are one of them who wait for the last minute toadopt some crucial tax saving strategies or methods, then let me tell you - they won’t necessarily workwell.

  3. The head startin filing a tax return can help you in cutting tax bills orgetting biggerrefunds.

  4. BUT BEFORE PREPARING FOR THE TAX RETURN, ONE MUST AVOID THESE ACCOUNTING BLUNDERS IN ORDER TO FILE CORRECTLY:

  5. 1. Not Knowing What Documents to Keep Proper documentation helps during tax season and at the time of auditing. If you don’t keep a close eye on the expenses, it may lead to inaccurate records.

  6. Keep these Documents in order: For 1-3months Receipts of sales and utility bills For 1year Checkbook ledger, paycheck, mortgage statements, and expired insurance records etc.

  7. Keep these Documents in order: For 7 Years Receipts for tax purposes, W-2 and 1099 forms, canceled checks, medical bills, claims etc. Forever Annual tax return, sales bills, wills, attorney designation,pension/retirement plan records, receipts of major purchases, legal documents etc.

  8. 2. Not Keeping Track of all Receipts- According to IRS, every business should maintain receipts of any expense they bear, especially the ones above$75 for three years from the date the return was filed.

  9. You can store the scanned copies of these receipts in the cloud. During auditing, this documentation of receipt plays a role of backup data of business purchases.

  10. 3. Missing Transactions and Sales Tax At the beginning of every year, tax documents are sent to you via email; don't misplace those documents at any cost. Your tax filing process becomes seamless, when you have these documents in hand before the due date.

  11. 4.Problem in P&L or Other Numbers Wrong statements or incorrect figures may trigger the IRS audit. Don’t put your business in jeopardy. Professional accountants and bookkeepers from Accounting To Taxes (ATT) can manage your business books accurately, identify irregularities, and can guide you in terms of financial decisions you are planning to make.

  12. 5.InaccurateClassification ofEmployees andContractors- There can be some serious consequences if you misclassify your employees. In worst cases, it can trigger a tax audit. Mostly independent contractors are referred to as 1099 employees in the US that don’t classify themselves correctly.

  13. 6. Not DifferentiatingBetweenBusinessandPersonalExpenses- Managing finances in a single account can be easy but may lead to financial and legal risks. Your personal expenses can be counted as business expenses that may create a mess while filing a tax return.

  14. By separating the business accountfromyourpersonal books, you can streamline your tax process to a great extent.

  15. Why Businesses Rely on Outsourced Accountants? Accounting firms like ATT, not only have expertise in tax preparation and bookkeeping, but are always updated with IRS guidelines as well. Businesses can take a sigh of relief as they outsource their accounting and bookkeeping to our expert team and get time to focus on generating profits.

  16. CONTACTUS Consult with our experts and get your freequote. www.accountingtotaxes.com info@accountingtotaxes.com +1 646 6882821

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