Wednesday, 27 June 2018

What do you need for business tax preparation? PART 1

In our previous blogs, we have mentioned the importance of having an expert by your side when you are going for business bookkeeping San Antonio. Well, the same is applicable for tax preparation too. Getting an expert for tax preparation makes it more efficient, accurate and saves you a lot of time and stress as well. Therefore, the most imperative element that you would need for business tax preparation is an expert who knows what he’s doing.
Apart from this, there are particular things or more specifically documents that you will need to arrange for the business tax preparation.

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Through this blog we are going to inform you about everything you will require for the same. Basically, it all comes under gathering the right information from various sources. Let’s begin!

1. Last year’s business tax return

We know that you wouldn’t want to go down that memory, but it helps in providing valuable information and serves as a guidance to make your way through this year's return. It basically helps you in verifying the following things -
  • The method used to track business finances
  • The date of incorporation of the business
  • The date of electing to become an S corporation
  • The federal tax ID number
  • The business code number and activity descriptions
  • The method used for tracking the inventory 
  • The beginning balance sheet amounts (the same as previous year's ending balance sheet amount)
  • Partner or shareholder information provided that there are no changes
2.  Articles of Incorporation

If you find yourself not having the prior-year tax return, or you are filing a tax return for a new business, then the Articles of Incorporation help in giving some important information:
  • List of officers
  • The state of incorporating the business
  • List of shareholders and percentages of ownership (in case of being  an S corporation)
3.  Partnership agreement

Again, if you are lacking a prior-year tax return, then the partnership agreement becomes the best source of:
  • Date of the partnership being started
  • The method used to track business finances
  • Information of any particular expense or income item that isn’t allocated based on loss, profit, or even ownership percentages
  • The amount of money put by each partner initially as well as current ownership percentages
  • The list of partners
Stay tuned to the second part of this blog for more information on the things you need for business tax preparation. As we have been providing the tax preparation and bookkeeping services San Antonio for years, impressing and satisfying our customers, we are your best source of information on the topic!