How to Prepare for Tax Season (And Make Your Accountant Happy)

It’s that time of year again…you guessed it; tax season is upon us. We may still be a few months away from deadlines but if you’ve ever heard the phrase “on time is late and early is on time”, well that applies to taxes as much as anything. The sooner you can send your (hopefully organized) tax documents, expense reports and receipts over to your accountant…the happier your accountant will be! Plus, you’re setting yourself up for success, getting the work out of the way and won’t suffer any delays.

We’re sure you’re all seasoned vets in tax prep by now but just in case you need a little refresher, we have your back. Start gathering the following line items to get the ball rolling on your taxes because the sooner that you start, the sooner you’ll be done and won’t have to worry about them again until next season!

• Do you have a nonprofit organization? If so, your first step is to determine if you even need to file at all! Nonprofits that have less than $25,000 in gross receipts are not required to file an annual tax return. Instead, you will simply file the form 990-N.
• Did your organization hire any vendors throughout the year who require a 1099 form? This would include LLCs, S Corps or C Corps but not Corporations. Make sure to request W9s from the appropriate vendors right at the beginning of the year, so that 1099s may be filed in a timely manner!
• Do you have your expenses organized? Are you using a secure cloud-based system, easily accessible by your accountant? Are your categories separated and have you made the necessary notes? Your accountant will need a clear breakdown of your expenses.
• Along with the organized expense breakdown, do you have the receipts to go along with this information? Are they clean and categorized and clear? Or are they crumbled in a ball, full of coffee/food stains and in disarray? Spend a little time separating these out into a system that is easy for your accountant to understand.
• If you are a nonprofit organization, do you have all of your donor receipts and a breakdown of any donations that you received throughout the year? Gather it…and make it organized!

There you go! If you can sort out all of these details in a timely manner and send them off to your accountant, you will be well on your way! Additional tips for a happy accountant include cookies, treats, snacks…you get the idea :)

Happy Tax Season!