As a Springfield, IL small business owner, you’re likely in charge of your company’s finances. While you may have a bookkeeper, the ultimate responsibility rests on your shoulders. That means tax season can be a challenge. The good news is that it doesn’t have to be stressful. By taking a few easy steps and getting tax preparation assistance, you can breeze through tax season and be able to concentrate on your customers and your employees instead of your tax forms. For most businesses, taxes forms and payments are due on April 18, 2023.
First, Get Organized.
The first step to preparing the taxes for your Springfield, IL business is to make sure that you’ve received the forms you need to prepare your taxes. This may include tax statements from your bank or brokerage, 1099 forms if you’ve done some outside consulting work, confirmations of estimated taxes you’ve paid or taxes you’ve paid on behalf of your employees, and insurance payments.
You’ll also have deductions. Your monthly P&L statements can help you with this. Hopefully, you’ve attached your receipts to your P&Ls, so you have a monthly record of what you’ve spent on things like postage, marketing, supplies, rent, and other expense categories. You’ll also want to total your mileage logs if you use a vehicle for business and gather receipts for things like parking and tolls.
Make Sure You’ve Filed Your Necessary Pre-Tax Forms.
If you hire outside contractors to help you and your staff during the year…and you’ve paid them $600 or more, you must send them a 1099-NEC form and keep a copy for your records. If you have employees, you must get their W-2 forms to them by January 31st.
Fund Your IRA or Profit-Sharing Accounts.
Adding money to your Roth IRA or solo 401k accounts can help reduce your business tax obligation as well as help fund your retirement. In addition, if you have a profit-sharing plan set up for you and your employees, you’ll need to make your final contributions no later than April 18, 2023.
Working with JLW Tax & Bookkeeping.
Just like you won’t expect to wire your new office or represent your business in a lawsuit, you shouldn’t be expected to know the intricacies of business tax accounting. By enlisting the help of a skilled accounting firm like JLW Tax & Bookkeeping, you’ll not only free up your time to spend on your business but will also make sure you take advantage of all of the deductions available to you and that you abide by the latest tax rulings.
If you’re looking for experienced tax assistance in Springfield, IL, JLW Tax & Bookkeeping Services can help. Our experienced accountants can not only help you with filing taxes, but all of your bookkeeping and payroll management needs. To make an appointment, contact us today at 217.679.1872.