Businesses (Partnership, S Corporation, C Corporations and Sole Proprietors):

Getting ready for filing taxes for small business owners can be a challenge.  For all business tax returns, regardless of entity type, you will need a profit and loss statement, also known as an income statement.  Most cases also require a balance sheet.  Whether you have an accounting software, or you’re just using an excel spreadsheet, here is a list of items that can help you capture an accurate net income for tax purposes.

  • This will assure that you have accounted for all expenses and income.

Reconcile all bank accounts through the end of the year.

  • Verify accounts receivable and accounts payable are correct at the end of the year.

If you use the accrual method of accounting, make sure you write off uncollectible invoices and capture all expenses that have been incurred for the year. This is very important to come up with an accurate bottom line.

  • Verify inventory balances at year end.

Businesses that carry inventory may do a physical count more often than once a year, but it is crucial that they at least do a year-end physical count.  This ensures that all product that has been sold is expensed through cost of goods sold.

  • Reconcile credit card balances.

If your company used credit cards for business purchases, it is important that you reconcile them at year end to assure that you have accounted for the annual expenses.

  • Verify loan balances.

The interest on business loans needs to be taken as an expense.  Verifying the year-end balance assures you capture all of the interest as such.

  • Review your fixed assets. Make sure all purchase and disposals are accounted for.

Accounting for new purchases means that you will maximize your depreciation expense.  On the flip side, accounting for the disposals will reflect an accurate income.

  • Verify any cash expenditures are accounted for.

If there were cash purchases that were not reimbursed by the company, these will need to be accounted for so you capture all expenses and reduce your bottom line.

This can be a lot to do with a whole year’s worth.  What if you could have these financial statements at the end of every month?  You’d have a better handle on what was going on in your company.  Better yet, what if you knew how much tax you might owe in April by September based on how the year was going.  We can provide you with monthly financials as well as tax projections so there are no more big tax surprises.

Taking Section 179 Depreciation?  Beware the Section 179 Trap.

Individuals:

The following is a list of statements and forms that you will need to complete a personal Income Tax Return.

  • Gather W2’s for wages.
  • Gather 1099 for interest, dividends, retirement, misc income, Social Security, state or local refunds, gambling winning, etc.
  • Get Brokerage statements showing investment transactions for stock and bonds.
  • Get K-1s from partnerships, s corps, estates, and trusts.
  • Statements supporting education expenses, deductions or distributions (forms 1098-T, 1098-E or 1099-Q)
  • Forms 1095 (A, B, or C) to verify health care coverage and to verify the Premium Tax Credit.
  • Any statements supporting deductions for mortgage interest, taxes, and charitable contributions. This also includes Form 1098-C (contributions of motor vehicles, boats, and airplanes).
  • Copies of closing statements for the sale or purchase of real estate.
  • Legal papers for adoption, divorce, or separation involving custody of your dependent children.
  • Income and expenses from farming and from rental activities.
  • Out of pocket medical expenses.
  • Dependent care statements.
  • Statements regarding any energy efficient upgrades that you made to your personal residence.
  • Date and amounts of Estimated Tax Payments made for the tax year.

We Are Here To Help

Let our experts help you with any of you bookkeeping, payroll or tax needs. Contact our offices in Oklahoma City: 405-720-1244 or Tulsa: 918-477-7650 today!