Prepare Your Small Business For Tax Season

January is the time of year to start getting ready for tax season. This requires gathering all of your financial information for the past year. What are some things you can do to make sure filing taxes for your company goes smoothly in 2014?

First of all, it’s a good idea for the business owner to separate business and personal expenses. This can mean establishing a business credit card and paying it off each month. This will improve your credit rating should you need financing for a new venture.

If you are a retail business, as soon as the busy Christmas season is over, look at your accounting books and update them if you are behind. If you haven’t been tracking your expenses closely over the year, now is the time to catch up and begin doing so in the New Year. If you work with a contracted or outside accountant, plan to meet with them sometime in January. Some business owners make the mistake of waiting until April only to find they are in a rush to meet the deadline of the 15th. Meeting with him or her early will avoid unnecessary stress.

If you are a sole proprietor, establish an LLC so to help formally separate business and personal assets. You will also receive additional tax benefits. It also makes your company appear more professional.

Finally, make sure you are up to date on tax codes. While many are able to file their own taxes with computer software, hiring an expert may save you money and ensure you get the most deductions for which you are eligible.