As the year draws to a close, many companies have started thinking about making preparations for their year-end taxes. However, as with any other form of tax preparation, this is often seen as a burden and a huge chore. Miscalculating year-end tax can also result in some pretty hefty fines and run-ins with the law for companies and we don’t want that, do we? We all want to wrap up the year nicely and focus on the holiday season, so here are some of our top year-end tax preparation tips to help you get your year-end taxes done smoothly.
Review your taxes paid for the year
Review your taxes paid for the year, every quarter. This helps you to stay organised and keep track of how much you have paid in taxes thus far for that given year. This helps you to get your year-end taxes done more smoothly for several reasons. The first of which would be the fact that this helps you budget properly. How much have you already spent on taxes this year? This will help you budget accordingly for the following years, so that you know approximately how much should be set aside for tax payments each year. This is also a good time to take note of payments and measure them up against year-end figures. Ultimately, reviewing your taxes already paid for the current year can also help you prepare for how much you might be expected to pay for your year-end taxes and whether you are eligible for any deductions. It can also help you better organise your budget for the following year.
Ensure that you are familiar with legislations
Not submitting your year-end taxes on time or having inaccuracies in doing so can cause your business a lot of trouble. This results in large fines for your business and could also result in lawsuits. This will not only cause your business to lose unnecessary money on hiring lawyers and paying fines, it also gives a very poor reflection of your business, and nobody wants that. Staying organised and making sure you are familiar with legislation will make your year-end tax preparation a lot less hectic and a lot smoother. Take the time to read up on the legislations and necessities, preferably some time in advance. This way, your team is aware of any requirements and will be able to prepare for year end taxes with minimal hiccups. Familiarising yourself with tax legislations will ultimately save you a lot of time, headache and of course, money.
Year-end taxes can be a chore, but they don’t always have to be. With proper planning and research, your year-end tax filing can actually go a lot more smoothly than what you expect. There are a lot of common misconceptions and confusion when it comes to year-end taxes, and that is why we are here to help. Want to learn more about year-end tax calculation and how it works? Then sign up for our upcoming webinar, where we will be debunking common year-end tax calculation myths. We’re looking forward to answering all your questions and clearing your doubts when it comes to year-end tax calculations.