Tax Prep 2020: How to Start Preparing for Next Year Now
Now that April 15 is well behind us, it's time to cue a little relaxation in the accounting department, right? Not necessarily! If your company was hit with a number of challenges as many were this past tax season, it's time to set things up for an easier 2020 tax season next year. Here are some tips on how you can use this year's taxes as a guide for next year's tax preparation, making your job much easier in the long run.
What were the issues you ran into this year for your tax preparation process? Take the time to seriously consider all the areas where you were bogged down in paperwork, didn't have the information you needed or had to recalculate your figures due to changes in the federal tax laws.
What can you change to make it easier to have that information on hand when you need it for the 2020 tax season? Look at changes that you may want to make to how you process information and handle data in your accounting system. Add files to your paper filing system as needed so that you can keep the information you need handy.
Did you have to pay additional taxes due to changes that happened, either in your business or personal taxes? If you did, it's time to look at what you need to change to avoid having that happen this year. If you had to pay taxes when you filed, consider increasing quarterly payments. If you missed out on tax cuts still available this year, plan how to maximize the savings.
Were there other issues that arose, such as employees who ended up owing a large amount to the IRS at the end of the year? Consider talking to employees about raising their withholding to avoid this issue in the future.
By keeping the changes that happened during tax preparation this year, you'll find that the 2020 tax season sails by relatively easily. But what if you're not quite sure what changes to make and how to organize your information to make the process easier? The experienced associates at AccountRely are here to help. Please feel free to reach out today to be connected with one of our tax accounting experts to get started.