Health is wealth, but as tax season approaches, good health is hardly met. And you know what’s the reason? Stress. Stress is a vicious cycle and might lead problems for business owners especially as taxes seem to get more complicated each year and with the added worries of the current situation we are facing, we do need to be reminded to take it slow.
If you’re already worried about how much work you will do when you start tackling your taxes, the four steps below will help you minimize the stress you’ll about to feel:
Start and File Early
Having a deadline looming in your head makes the work more stressful. The IRS had already extended the tax deadline from April 15, 2021 to May 17, 2021 because this is still a tough time for many people. This is a piece of good news for many people because it will give them more time to prepare their returns.
By starting early on your tax preparation, the less stressed you’ll be and the more advantage you’ll have. If you start early, you will also finish early, giving you more time to review your returns to avoid mistakes and you will be able to avoid cramming to get it done before the deadline comes.
As you start early, begin by creating a tax checklist of all documents and forms that you will need for your returns. A checklist like this will help you stay organized and will help you keep control of every step of your tax preparation.
If you are filing electronically, you should also make sure that you have digital copies of all your transactions so it can be easily accessible and available as you work on your returns. Utilize a secured cloud storage for your sensitive information to make sure they don’t fall in the wrong hands.
Go One Step at a Time
Now that you have your list, it’s important to not get overwhelmed with it. It might look daunting, but you have to remember you don’t need to do everything in one sitting especially if you have started early. Go at it one step at a time.
List them down in terms of priority and tackle it that way. Let your list and schedule guide you and sooner or later, you’ll be done with
Don’t Do It Alone
If you know how to do taxes on your own, good; if you have a bookkeeper, the better; if not, hire a tax professional like an Enrolled Agent. The important thing is to ask for help if needed. Get yourself a trustworthy professional in time and not wait until the last minute. By hiring an Enrolled Agent, you can have peace of mind that your returns are being done accurately and timely.
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 email@example.com or at 713-855-8035.