5 Tips & Tricks for Tax Time From Tax Pros

5 Tips & Tricks for Tax Time From Tax Pros

ALT: Preparing early for tax season will make the filing process easier.

Tax season preparation for businesses often starts early in the year. Organizing paperwork ahead of time ensures a smoother and more accurate tax filing process for your business.

As deadlines approach, day-to-day business decisions can have a big impact on your overall tax payments. Planning ahead keeps you on top of the paperwork that tends to pile up quickly in the first few months of the year.

Whether you’re filing your income tax return or preparing for the upcoming year, these five tips from tax pros will help you stay organized and ready.

5 Tips and Tricks for Tax Preparation

1. Decide who will prepare and file your taxes

If your business experienced significant changes in the past year, your taxes may be more complex. In that case, it’s smart to hire a CPA or other tax professional. Don’t wait until the last minute—procrastination can cost you both time and money.

Alternatively, if your taxes are straightforward, you might handle them yourself using tax software. The key is to decide early who will take care of your filing.

2. Examine Previous Year's Tax Returns

Your previous tax returns are a great reference to ensure nothing gets overlooked—like dividends, interest, capital loss carry-forwards, or rarely used deductions.

If hiring a professional isn’t an option, there are free alternatives:

• Free File Alliance: Allows taxpayers with incomes under $66,000 to e-file federal taxes for free.

• Volunteer Income Tax Assistance (VITA): IRS-certified volunteers provide free tax prep and e-filing for qualifying taxpayers.

• AARP Foundation Tax-Aide: Offers assistance to those 50+ and those who cannot afford a professional tax preparer.

3. Tax calculation and filing can be automated or outsourced

Even with simplified forms, filing taxes can be stressful. Many filing tools now let you track refunds and choose payment methods, including direct deposit or applying the refund to next year’s taxes.

Consider hiring a tax professional if you:

• Earn over $150,000 annually

• Have complex investments, partnerships, or private company involvement

• Experienced major changes in income or expenses

• Started or closed a business during the tax year

• Are unsure about accurately preparing your own taxes

Professional guidance in these situations is usually worth the investment.

4. Collect Bank Statements

Your tax preparer will need bank statements to cross-check your balance sheet. This ensures all income and expenses are accounted for, helping prevent errors or missed deductions.

5. Stay Organized and Plan Ahead

Taxes are unavoidable, but preparation makes them manageable. Gather all your documents early, meet with your accountant, and tackle tax tasks before the last minute. With a little planning, tax season doesn’t have to be stressful.

Final Thoughts: Tips for Tax Time From the Pros

Paying taxes is a natural part of running a business, but preparation makes all the difference. By staying organized and proactive, you can make tax season much less stressful.

For personalized guidance and help with your business taxes, schedule a free consultation with one of Today CFO’s certified tax accountants today!