How to Get Your Small Business Tax Ready | Final Review

In our last segment we discussed making sure your balance sheet is correct. The seventh and last step in getting your small business tax ready is conducting a final review.

Below is a list of areas of review to confirm your numbers are accurate:

Review the equity section of the balance sheet.

  • Check to see if all amounts that where taken out of the business for personal use have been accounted for as draws by you the owner.  This includes transfers of cash and cash withdrawals from the business bank accounts or petty cash.
  • Check to see if you have accounted for the dollar value of any product or items purchased by the business that you used personally.  This dollar value should also be put into the draw account.

Review certain expense accounts

  • Office and other supply expense accounts for items that have a useful life of more than one year
  • Repairs and maintenance for items with a high expense that should be viewed as an improvement rather than a repair
  • Miscellaneous expense:  If you have an account you use for items you aren’t sure of what category they should go into, you will need to have an explanation of what these are so they can be properly recorded on your tax return.

Congratulations! You now have the proof and documentation necessary to have your 2012 tax return done accurately and properly.  My advice for you is to start preparing now for the 2013 tax season.  If you proof the numbers regularly, preparing for next year’s return will be a lot easier.

If you have any questions regarding getting your small business ready for the 2012 tax return season, contact me at (715) 379-0116 or email me at carlilesos@yahoo.com. You can also connect with me on Facebook or LinkedIn.