Are you struggling with taxes?

Now you longer need to be!

Now, through bookkeeping services, you can run your businesses, maintain a book of accounts which is essential.

Every year tax season comes and gives stress to the businessmen.

And at that time, bookkeeping services assist the tax filers in submitting their taxes to the concerned authorities.

A bookkeeper works the whole year in handling financial data of the business, so during the tax season, it does not become overburden.

The tax filers should ask the necessary details about the tax filings from the bookkeeper.

You must submit all the important invoices, bills, orders, requests to bookkeeping services on time.

Bookkeeping Services: How does it Help?

• Financial Management:

A bookkeeper works carefully all year to keep your financial data in order and prepare financial statements.

The primary duty of bookkeeper is to keep a proper track of income & expense throughout the year.

And during the tax season, it sends you reports to review for tax submission.

Every revenue generated & expense made, are kept in the receipt or invoice (paper or electric form) for the audit.

As a tax filer, it would be appropriate if you handle every receipt or order to your bookkeeper to record, as they occur. Because it would be easy for everyone to keep the record straight.

Always keep a check on your monthly bookkeeping. Like this, you will also certainly know about your bookkeeper method of functioning.

• All 1099s are Critical:

1099s are important for those who work as a freelancer or independent contractor during a financial period.

Double sure that you have 1099s with you, which your customers can provide you, as you have worked with them.

When you submit form 1099s, the tax authorities double-check the amount received on your behalf with the amount of income you report.

Avoid underreporting the income, if you don’t want a notice from the IRS.

If your earning is less than $600 during a year, you are blocked from submitting form 1099, but still, you have to report the earned income.

Note the Biggest Allowable Deduction First:

IRS allows two types of deductions:

1. A standard deduction

2. Actual expenses

A standard deduction is, simply, calculating the tax on the income earned, as per tax slabs.

Whereas, the actual expense, the bookkeeper will add up only that money, which was actually spent in the business operation.

You can choose any of the deduction method, which is apt according to your business. If you have any confusion regarding the method, consult your bookkeeping services for the solution.

• Make Retroactive Retirement Plan Contributions:

On your behalf, make sure your bookkeeper is contributing to a SEP-IRA – a retirement plan for small businesses and self-employed.

This will help in availing tax deducting during the tax season.

If your bookkeeper is unable to contribute to the SEP-IRA, then you should opt for a retirement plan, as soon as possible before the tax filing.

Save by Contributing to a Health Savings Account:

Ask your bookkeeper to contribute to a health plan in a Health Savings Account (HSA). As per IRS, you can have a deduction of $1,300 for an individual and $2,600 for a family.

• No Room for Error:

With the cover of perfect bookkeeping services, your business will not slide into the headquarters of the IRS.

The bookkeeper will make sure that your financial reports and documents are ready for the tax season. There will be left no room for the error in the tax submission by the virtual accountants.
Besides bookkeeper, you should also review everything on the tax submission forms – from account number to spelling of any names.

Although, you have to just hand over the receipts and invoices on time to your bookkeeper, but it would be better if you also review the documents – expenses and income.

• File for an Extension if You Have Missed the Deadline:

At times, there can be chances, when there is a delay from your side in submitting the appropriate documents to the bookkeeper. So, in that case, you can ask your bookkeeper to raise a request for the extension.

Then, the bookkeeper will raise an extension request citing the reasons to the IRS; and fill the main Form 4868 (Form 7004 for partnerships, some LLCs and corporations).

• Pay What You Owe:

After your bookkeeper has made you avail time extension in tax submission, make sure you and your bookkeeper work together in resolving the pending work.

This time makes no error because the tax officials won’t tolerate that you got the extension and still the work is not done. Avoid any late-payment penalties and interest this time, as the authorities won’t take this lightly.

Bookkeeping Services: Conclusion

What is the first thing that strikes into your mind when you hear the term bookkeeping or accounting?

Of course, the answer would be piles and piles of registers and papers squeezed into a room.

But that is soon about to become a thing of the past.

We all know that every year tax season comes with a stressful situation.

It’s quite obvious that the tax filers have a difficult time period at that time because they don’t want any hassle on the table during tax submission. Therefore, they avail the bookkeeping services, in order to, keep their records straight and accurate. The bottom line is although the tax formation industry is likely to survive, customers will be given an ever-widening pattern of choices for formation in not only how they can file, but also of additional financial and accounting services that they might need. In this digital age, the overall tax preparation procedure itself has steadily become much faster and more efficient. In fact, more information is now available in digital format. Mobile apps now allow tax filers who file short forms to neglect computer preparation altogether. The market has become even more competitive with cheaper web-based programs.