Essential Documents When Filing Taxes

Accountant doing a tax audit
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When it is the start of a new year, it means different things to different individuals. One of the common goals among most individuals is the deliberate effort to meet personal and business goals. Well, do not forget that the tax season is fast approaching, and you need to make adequate preparations for it. Working with tax accountants, especially one you will know by checking out, in Salt Lake City gives you the opportunity to file your taxes in the right way. Below are some of the documents you need to prepare before you meet your accountant:

Summary of Expenses

If you work from home and have a home office, you are eligible for some deduction expenses. The expenses include a certain percentage of the amount you spend on rent, utilities, and insurance. You should provide evidence of the expenses together with the size of your business space. If you are claiming the expense for the first time, you should provide documents showing the date of home purchase and cost.

Vehicle Log

Vintage car's dashboardHave you been driving a car for your business needs? If yes, you ought to present the equivalent mileage of the car. You should distinguish between personal miles and business miles. If the car you have been using is a personal vehicle, you can claim a portion of the expenses as a deduction. Your accountant can use either the expense method or standard mileage method for this. You should stick to whatever method you employ during your first time of car service.

Capital Asset List

Any transactions that involve buying, selling, or disposing of capital assets requires reporting. Remember to record the new assets to determine their depreciation. Eliminating the old assets saves you the tax you would pay on them. Accounting experts use software that enables individuals to add and edit all the activity involving capital assets in a year. That way, the accountant can classify any changes in the capital assets accordingly.

Financial Statements

The essential financial statements in a business are the income statement and balance sheet. The two documents should be up-to-date with the correct details. You should reconcile the bank details on the business accounts. When you update the accounts, it is easy for an accountant to assess the business’ liabilities and assets.

The tax code in different states keeps changing now and then. Therefore, it is important that you liaise with an accountant. The accountant will guide you in the process of gathering the required documents. Filing the taxes on time and in the right way protects you from making costly mistakes.

You can never over-prepare for the tax season; neither can you make your preparations too early. In fact, the earlier you start making the arrangements, the better it is for you to meet the tax deadlines without omitting any details. Preparing your tax documents requires you to have special knowledge of all the necessary documents and processes. Seek the help of a tax accountant to help you throughout the process. The tax expert will help you meet the requirements according to your business needs.

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