Small Business Documents You Need for Tax Time
Your small business taxes are coming due soon. Whether that filing deadline is March or April depends on your business’s structure, so you’ve got at least a couple of months to go.
But either way, you shouldn’t wait to get your small business documents in order. Now’s the time.
Small business taxes are typically complex and require a laundry list of documents. Most of these should be collected throughout the year, though a few specific tax documents can’t accurately be filled out until the calendar year is over. But without these documents, your small business faces the very real risk of an inaccurate filing — which raises the much worse risk of an IRS audit.
That’s why no one should wait until the last minute to collect all these forms. Today, we’ll help you out by outlining many of the forms you’ll need for tax time, whether you’re preparing your taxes yourself or handing off the duties to a preparer.
Small Business Documents for Tax Time
Your EIN
Your Employer Identification Number (EIN) is not, in fact, a document. But it’s nonetheless a crucial thing you’ll need for taxes. Companies typically obtain this early on as they’re setting up shop. But you’ll need to make sure you have this ready for your tax preparer or for your own purposes once you start filling out paperwork.
Income Sources
Among the small business documents you’ll need to put together are any documents pertaining to your income. Primarily, this means your gross receipts from your product and/or service sales. But it might also include evidence of returns, bank account interest income, and income from other sources, such as rentals.
Expenses
Small businesses can rack up a long list of expenses that’s too long to cover here. But as you’re compiling documents, here are the major categories to look for:
- Advertising
- Amortization
- Business insurance
- Commissions
- Computer/internet expenses
- Contract labor expenses
- Depreciation
- Employee benefits
- Employee wages
- Estimated tax payments made
- Facility maintenance and repairs
- In-home office
- Interest expense
- Office supplies
- Phones
- Professional fees
- Rent expenses
- Transportation/travel expenses
Inventory
Depending on what type of business you run, your small business document checklist might also include information about your inventory for calculating cost of goods sold.
You’ll need documents showing the dollar worth of your inventory at the beginning of the year and at the end of it, any inventory purchased, and any raw materials and supplies.
Tax Forms
The IRS also requires small businesses to file various tax forms, which usually vary based on your company’s business structure. For instance:
- Form 940: Reports annual Federal Unemployment Tax Act (FUTA) tax.
- Form 1040/Schedule C: Reports money made or lost by a sole proprietorship in a given year.
- Form 1065: Reports money made or lost by a partnership or limited liability company (LLC) in a given year.
- Form 1120: Reports money made or lost by a corporation in a given year.
- Form 8829: Used to deduct rent, utilities and other living costs as business expenses.
Not sure what tax forms you need for the 2023 tax year? Use these links to find out and download what you need:
Leave the Tax Headaches to the Pros
Except for the rare instance in which a small business owner comes from a strong tax background, most companies without their own accounting department are best off having a tax professional tackle their filing duties.
It’s not just convenience, though there’s plenty of that. It’s a sound financial decision. Longtime tax professionals, like those at McManamon & Co., not only save you crucial hours, but they’re also typically better able to identify tax breaks that your business qualifies for — and in long-term tax-client relationships, they can even help you plan ahead to ensure you make the most out of available tax credits and deductions.
Take one of the year’s biggest accounting responsibilities off your plate. Call us at 440.892.8900 or contact us online.
Tags: McManamon, McManamon & Co., small business, small business taxes, taxes | Posted in McManamon & Co., small business, small business taxes, taxes