{"id":10508,"date":"2023-03-09T10:51:13","date_gmt":"2023-03-09T15:51:13","guid":{"rendered":"https:\/\/web.uri.edu\/risbdc\/?p=10508"},"modified":"2023-03-09T10:51:39","modified_gmt":"2023-03-09T15:51:39","slug":"3-simple-small-business-tax-preparation-tips","status":"publish","type":"post","link":"https:\/\/web.uri.edu\/risbdc\/3-simple-small-business-tax-preparation-tips\/","title":{"rendered":"3 simple small business tax preparation tips"},"content":{"rendered":"
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For many small businesses, getting ready for the tax filing season can feel like a scramble to find the right documents, fill out the correct forms, and follow the proper steps. There are ways to make the experience less overwhelming and run more smoothly.  <\/span><\/p>\n

Small business tax preparation<\/span> starts with ensuring your books are in order, so this month we checked in with Glen Zibolis, a Rhode Island-based Advanced Certified QuickBooks ProAdvisor and part-time business advisor with the RI Small Business Development Center. He suggested a few tips to simplify the preparation process and help you get tax season ready. <\/span><\/b><\/p>\n

1. Pick the right accounting software <\/b><\/p>\n

If you are still using a spreadsheet to manage your small business taxes, the chances for human error are much higher, which can impact the accuracy of your tax returns. Luckily, numerous accounting software options are available to choose from. Picking the best software will ultimately depend on your specific business reporting needs. <\/span>QuickBooks<\/span><\/a> is typically the most accessible accounting software recommendation for <\/span>small business tax preparation.<\/span> No matter the software you choose though, it is imperative to have a basic understanding of how to access and retrieve financial reports. <\/span><\/p>\n

2. Separate business expenses from personal ones<\/b><\/p>\n

One of the most common ways to get into tax trouble is having personal expenses mingle with your business expenses. The first thing you should do when starting a small business is establish a separate business bank account. Having a different account for business expenses will ensure you have accurate records and can keep personal transactions more private.<\/span><\/b><\/p>\n

3. Regularly reconcile bank and credit card statements<\/b><\/p>\n

An essential step for <\/span>small business tax preparation<\/span> is ensuring all bank and credit accounts are reconciled monthly. Reconciling your bank statements means you’re comparing them with your bookkeeping records and confirming there are no discrepancies. Be sure to take this step for any business credit cards or payment accounts (like Venmo or PayPal), too.<\/span><\/p>\n

Bonus tips <\/b><\/p>\n