Bookkeeping Tips to Keep in Mind for Tax Preparation

Share on facebook
Share on google
Share on twitter
Share on linkedin
Share on print
Share on email

Any bookkeeping, business or tax article contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues, nor a substitute for a formal opinion, nor can it be used to avoid tax-related penalties. If desired, we would be pleased to perform the requisite research and provide you with a detailed written analysis. Such an engagement may be the subject of a separate engagement letter that would define the scope and limits of the desired consultation services.

Most of the business owners devote their time and effort in increasing their sales and improving their business operation. There’s no need to worry when everything is going well; when the business is earning more than what is expected until tax season comes and then suddenly everybody begins panicking. If you have found yourself facing this dilemma, you’re not alone.

Tax preparation and filing is considered to be one of the most dreaded tasks a business owner can face and as much as possible, they want to stay away from it. But of course, it is something that should not be left in the backburner especially if you don’t want to pay huge fees.

If you want to be more prepared, organized, save time and make the process easier, these bookkeeping tips for tax preparation are what you need:


  • Prepare a Checklist

Bookkeeping Tips for Tax Preparation

A lot of financial documents are needed when preparing taxes. This may include bank statements, credit card statements, accounting records, payroll reports and many more. Imagine if you are gathering these necessary documents while you’re in the middle of your tax preparation, this won’t only cause a lot of cramming, but expect that it’s going to be a mess. There will also be a chance that you might miss some documents which can cause problems later on.

Therefore, it is wise to prepare a bookkeeping tax preparation checklist to cover everything. You’ll be surprised at how much time you will save by organizing your information beforehand. Your checklist should include all financial information and documents you need, all forms you need to accomplish, and all deadlines that you should keep in mind make sure that you file all your tax returns and pay on time. This is a useful reminder and something that every taxpayer must do.


  • Sort and Categorize Expenses

Bookkeeping Tips for Tax Preparation

After gathering all necessary documents, sort each business expense based on their respective categories. For example, automobile expenses, office supplies, utilities, medical expenses, and others. 

Since different types of expenses are eligible for tax deductions, grouping them will make it much easier to calculate and claim credits and deductions. But be sure to ask assistance from your bookkeeper to check if your financial information is accurate and that you categorized expenses correctly. It is best to let an expert handle this because making a mistake in this area can be costly. 


  • Store Financial Documents in a Secured Digital Cloud

Bookkeeping Tips for Tax Preparation

If you are still using the Shoebox Technique to store your receipts and other hard-copies of your financial transactions, it’s time to consider changing that. 

It is highly recommended that you must create a digital copy of all your financial transactions as soon as possible. Whether you are using a bookkeeping software or manually scanning them, this step is very important. Digitally stored documents are accessible, easily searchable, secured and more convenient during tax preparation.


  • Hire A Professional to Handle Your Bookkeeping and Taxes

Bookkeeping Tips for Tax Preparation

Tax preparation is not something that you have to face alone and is oftentimes it is best handled by a tax professional. If you want to save time, money and have peace of mind, you might want to consider hiring a tax professional who will help you get everything done correctly and accurately.


Tax season is here and with all the changes brought by the law and stimulus payments, taxes will be a little more complicated this year. 

FAS focuses on providing financial insights that can help you and your business. If you need assistance with bookkeeping, business and/or individual income tax return preparation or cross-border taxes, feel free to contact us! Reach us at or at 713-855-8035.

Bookkeeping Tips for Tax Preparation

Share this post NOw

Share on facebook
Share on google
Share on twitter
Share on linkedin
Share on print
Share on email

Your Solutions To Success Your Solutions To Success Your Solutions To Success

Small Business Financial Services

We help you cut through the clutter and noise and help you focus on a clear path to success. We help you succeed with a reliable bookkeeping, payroll support and income tax reporting.
Learn more

Individual Income Tax Services and IRS Response Assistance

Stressed during tax season? Surprised with a huge tax bill? Receiving an IRS letter? FAS can help make your year-end tax compliance less stressful with professional tax services.
Learn more

US and Canada Cross Border Tax Services

Our experienced staff, combined with our US and Canada locations, allows us to provide the tax support you need, wherever you are, at home or abroad.
Learn more

What Our Clients Say What Our Clients Say What Our Clients Say

Running a small business is an extremely challenging task. However with a team like FAS, I do not have to worry about our bookkeeping and tax services.

They are truly great team!
Garage Guys Automotive

Very responsive! FAS bookkeeping service has been an integral part of my consulting business.

I highly recommend FAS to business owners who are looking for a reliable business partner to handle their bookkeeping needs.

Bruce Saxton

I have known Christy for about 5 years. She has assisted several of my clients and me personally.

If you are a business owner, Christy makes an outstanding strategic partner. I highly recommend her.

Gerry Brisson

I started looking for a new bookkeeping and tax service firm as my company was no longer getting the service that we deserve from a bookkeeping firm.

I highly recommend FAS to business owners who are looking for a reliable and professional bookkeeping and tax preparation service firm.

Mark Sargent

 Because of the nature of my business and report requirements from corporate that are time-sensitive.

I can count on Cristy and her team’s eye for detail and reliability to deliver accurate and timely financial information.

Terri Foster

We've been with FAS for years and they are one of the most professional and honest people we've worked with.

I highly recommend Cristy, Dennis and FAS Bookkeeping & Tax Services Firm.

Katie To

Being a small business owner means we’re always constrained by time and resource.

I highly recommend FAS for your bookkeeping and tax preparation needs.

Roy Andrade
FAS, with Cristy & Dennis, has been an important part of our progress as a company and I will not hesitate recommending them to business owners who are looking for a serious business partner for such a sensitive financial matter.
Jorge Vasquez
I have referred Cristy to many of our clients and have always been impressed by her professionalism and dedication to her customers.

If you own a small business and operate in the Houston or Katy area you will benefit from working with Cristy on your financials
Roland Parker
Christy is an awesome bookkeeper and adviser. I highly recommend her for personal tax and business tax.

Not only she help with our taxes, she even organize our entire book keeping for very reasonable price.
Kayla Cory
FAS is the best bookkeeping services I have encountered in my 39 years of self employment. They are hard working, ethical and honest in every aspect of their professional lives.

Both Dennis and Cristy have gone way beyond their normal duties to provide services at the highest level.
Marv Conway