The fall season is officially here. We’re almost exactly six months away from the personal tax submission deadline in April, which means taxes are the last thing on most people’s minds right now. However, now is actually the best time to start getting ready for your taxes. Fall is the season to do your research and start compiling your year’s documents in order to avoid a last-minute rush to file for next year.
Below are a few tips that will help you take advantage of your autumn prep time so you don’t fall behind on your taxes.
Get a System in Place
Whether you are just starting now or you keep tax planning an important priority all year long, it’s important to have a consistent system in place that you can follow. This is especially true if you are a business owner responsible for business taxes. Have an accurate accounting system and be diligent with it. When all the pieces are already in place, you can stay on top of your finances, making the preparation for your taxes much easier.
Set Your Expectations Accordingly
When you do your research and preparation early, you will know exactly what to expect when taxes are due. Understand your tax liabilities and set aside funds if you think you might owe money. If you are a business paying quarterly estimated taxes, practice being accurate with your estimates so you don’t owe more when you file your return next year.
Keep Your Files Up-to-Date
If you had a major change in your life (marriage, baby, move), make sure that your Human Resources department is aware of all life changes. Otherwise, documentation could be incorrect and that could be problematic come tax time.
Sit Down with a Tax Professional
Use this time to consult with a tax professional. You can review your documents so far, understand what else you’ll need to do over the next few months and be fully prepared for your tax filing next year.
The team at Ferguson, Timar & Company is focused on helping you get the most out of your tax returns. We’ll walk you through everything you need to know this autumn so you don’t fall behind when tax season rolls around. Contact us today for more information about our tax preparation and accounting services or to schedule a tax consultation appointment.