9 tips for tax season and why you should come to the next Make. Learn. Grow.
Yes, we have Thanksgiving and Christmas and New Year’s and MLK Day and Valentine’s Day and even Easter to celebrate before we arrive at April 15. But be warned: NOW is the time to prepare for tax season. Four accounting and legal experts will share their suggestions for getting ready at the next Maker City Make. Learn. Grow. session at noon on November 21. Sign up here to attend — it’s free!
Come listen for other ways to keep Uncle Sam happy – and off your back! Here are a few things to think about and pieces of advice from our experts leading the workshop.
From Eric Elliott, president and CEO of Elliott Advisory Group:
1. “Don’t wait until the last minute to make sure your accounting records are in good condition. If you wait until after January 1, you may miss out on opportunities like large equipment purchases and retirement plan contributions.”
2. ”Touch base with a CPA firm willing to sit down for an hour or two to get you set up properly so by the end of the year most transactions have been entered properly. If you’ve done no accounting throughout the year, the shoebox approach can get rather expensive.”
3. “A lot of people make a mistake with their personal use of company assets. The most common is the auto. The IRS wants to see some of those expenses allocated to personal use. They know you had to have driven it home. That’s pretty easy for the IRS to pick up on.”
From Alicia McMurray-Smith, attorney with General Knox Law:
4. “The kind of business structure you choose will affect not only how your company is run but your tax situation as well. I would recommend operating as sole proprietorship or partnership until you have the money to have a business attorney form an entity (a corporation or LLC) for you.”
5. “My best advice is talk to a professional. Stay away from internet forums. A consultation with a business attorney is a great investment.”
From Haseeb Qureshi, attorney and entrepreneur with Morehous Legal Group:
6. “One thing people forget is to make sure they’re current with their business licenses. You can do that anytime.”
From Adrienne Webster, owner of AOW Tax and Accounting:
7. “Now is a good time to start asking for W9s from your independent contractors so you can issue 1099s. Anything to can make January a little easier.”
8. “I’m a QuickBooks girl, but it can be a little overwhelming. Keep your bookkeeping as simple as possible. Artists or consultants who don’t have a lot of transactions in a month might find it easier to keep track in Excel. Talk to an accountant to get set up correctly.”
9. “Don’t be scared to ask for help, don’t be scared to call an accountant. And don’t ignore mail from the government!”
For more practical advice and Q&A, make your way to the Knoxville Entrepreneur Center on November 21 from 12-1pm. There are only a few more spots left, so let us know you’re coming by registering in advance!