On top of New Year celebrations, goal setting, and fresh workout plans, tax season is coming fast. Tax season accounting for landscaping business owners is something that makes most people want to crawl in a hole and come out when April is over. But so much of your tax-season stress can be alleviated by simply laying out the necessary tasks in front of you. You don’t have to prepare your books blindly – or worse, get to tax filing and realize you didn’t prepare your books at all.
Here are some of the key ways you can prepare your business for success this tax season:
- Enter transactions
Transactions for every bank account and credit card must be entered into your accounting software. After all entries are complete, these accounts need to be reconciled.
As you compare your financial records against the bank statements, review the bank or credit card register for missing or uncleared transactions. Also, review accounts receivable and accounts payable. Delete any duplicate records, and adjust transactions to make sure every account has the right information.
- Don’t forget fixed assets
Record your fixed assets (such as new equipment and other large investments) with the bill of sale attached to the transaction in your accounting software.
- Check financial statements
Review your Profit and Loss statement and Balance Sheet for any red flags in your landscaping bookkeeping. For example: is there a number on the financial report that doesn’t make sense? Don’t assume it’s right – dig in to make sure!
- Complete 1099s
Don’t forget about your contractors! Make sure you have every independent contractor’s W9 so you’re set up for success when 1099s need to be sent out. You can find the fillable W9 form on the IRS website. The contractors will fill them out so you can issue 1099s, which they’ll use to file their tax returns.
Starting with these simple steps will bring you up to speed for your tax season preparation. Focusing on small and steady checks-and-balances for your finances will get you so much further in the long run than trying to double-check everything at the last minute!
But we get it – sometimes there just isn’t time to put in the extra effort and check these tasks off your to-do list. If you need landscaping accounting help to make sure you’re ready to file your taxes this year, schedule a call with AccountSolve.