Either as an individual, or a business there are very few of us who think doing taxes is fun or enjoyable. Chances are most people will never find that paying money to the government is something they like doing. But there are things you can do to help make the whole thing a little less painful.
Don’t wait till the last minute. Doing your taxes is just one of those things you can’t procrastinate on. Most tax deadlines are rigid, so don’t wait until the last minute to start. If you use an accountant, they won’t be able to provide a quick turnaround if you get them your information at the last minute.
The same applies to remitting your estimated taxes. If you’re an individual, sole proprietor or S-corps filing at the individual level who expect to owe $1,000 or more in taxes, you need to be filing quarterly estimated taxes. Depending on how much you owe, waiting until filing time to pay the government could make it more likely you get penalized with interest.
Try having your financials in good shape and easy to locate. When it comes time to file it can be a real headache if you’re missing documentation or can’t find what you need quickly. If you use an accountant it also helps to have things in order. Accountants will likely charge a higher hourly rate just to straighten things up.
It’s important to develop a good relationship with your accountant so that you can work together and maintain your financials in an orderly fashion.
Preparation is the key when it comes to taxes. Having your financials in shape and ready to hand over to your accountant when it come time to do your taxes will make the whole experience much less painful.
Doing your taxes will probably never be fun, but if you’re prepared it can be something you can get through a lot easier.