For small business owners, dealing with tax issues can be a real headache. As noted by the Internal Revenue Service (IRS), business taxes fit into five broad categories: Income taxes, estimated taxes, self-employment taxes, employment taxes, and excise taxes. Of course, within those categories are many different complex issues.
To ensure that your company is able to effectively minimize its tax burden and avoid problems with the tax authorities, it is imperative that you stay well organized. Make sure you get the right tax documents to your accounting professional. Here, our small business tax accountants provide an overview of the documents that you need to get started.
A Guide to Small Business Tax Documents
1. Estimated Tax Payment Receipts
The United States operates under a ‘pay-as-you-go’ tax system. In effect, this means that individuals and businesses are supposed to pay taxes as income is earned. Most businesses comply with this requirement by making estimated tax payments. Carefully record the estimated taxes that you have already paid to the federal, state, and local governments. Estimated tax payments will determine how much your company needs to pay—or how much it will get as a refund—at the end of the year.
2. Year-End Balance Sheet (Profit & Loss)
Next, you will want to make sure that you have a year-end balance sheet. Essentially, this type of documentation should show the profits or losses of the business. Both revenues and expenses should be listed on a P&L statement.
3. Year-End Account Statements
Beyond a year-end balance sheet, it is also useful for a small business tax accounting professional to have access to annual account statements for company bank accounts and investment accounts. These documents help to reconcile the numbers and ensure that everything is being recorded and reported properly.
4. Payroll Tax Information and Wage Reports (W-2/W-3 Forms)
Payroll is one of the most complicated tax issues for small businesses. Even a relatively small oversight could cause serious payroll tax problems. Get all of your payroll information and wage reports organized, including W-2 forms, W-3 forms, and stated-related withholding or employment forms.
5. Sales Tax Information
Sales taxes are another potential source of trouble for small businesses. Make sure you have all of your sales tax forms and records together. A small business tax accountant will help you with sales tax matters.
6. Business Expensing Documents
When you incur a business-related expense, it is important to document that amount and the nature of the transaction. With proper business expensing documentation, your small business tax accountant will be able to ensure that your company is able to maximize deductions and minimize total liabilities.
Get Help From a Small Business Tax Accountant Today
At Williams Accounting & Consulting, our small business accountants have the skills and expertise to assist your company with the full range of tax issues. If you have any questions or concerns about small business taxes, we can help. Contact us to learn more about our tax accounting services. With an office in Atlanta and an office in New Orleans, we are more than ready to get started working for your small business.
