Tax season can feel overwhelming for small business owners, entrepreneurs, and the self-employed. Navigating deductions, income reports, and complex forms can quickly become a hassle. That’s why working with a tax preparer who is familiar with helping small business owners is essential. But before you meet with a tax professional, preparation is key. Bringing the right documents and details to your appointment can help streamline the process and ensure you get the maximum deductions your business qualifies for.

Small businesses face unique tax challenges, from managing expenses to staying compliant with constantly changing regulations. Without proper preparation, you could risk errors, missed deductions, or even penalties from the IRS. Organizing your tax documents can feel daunting but breaking the task down into key categories simplifies the process, including:

Personal Information: Personal information including your tax filing status, Social Security number, identification such as your driver’s license, and previous IRS correspondences are important to start the filing process. You will also want to bring the same information if your spouse is involved in your business.

Business Information: Your tax preparer will also need information such as the details of your business entity, your employer identification number, and a copy of tax returns from the previous year.

Income Records: It’s important that you bring documentation that clearly states the gross income of the business and all sources of income. This can include invoices, 1099 NEC forms from clients, and sales reports from e-commerce platforms.

Expense Documentation: You should prepare a document or spreadsheet that details all business expenses, from purchasing supplies and related services to paying employees and contract workers. This helps your tax preparer look for potential tax credits and deductions as well.

Contact Our Business Accountants to Learn More

Don’t wait until April to schedule your appointment! Meeting earlier in the year gives your business accountant plenty of time to find every deduction and ensure compliance with tax laws. By organizing your financial records and working with a trusted tax preparer, you can reduce stress, maximize deductions, and set up your business for long-term success. Gundersdorff & Company – Accountants is here to help small business owners throughout Chapell Hill and Durham, NC. To learn more or to schedule your appointment, contact our staff today.