Recordkeeping to a business is like a person’s physical health. It is important to be in good health mentally, physically, and emotionally to keep a peace of mind, prevent life threatening health issues, and for some, avoid receiving a high hospital bill. Likewise, a business owner should prioritize keeping good records to have a peace of mind about the health of their business and be prepared to substantiate deductions listed on their tax returns when asked for proof by the Boss (referring to IRS).

What the point?

Recordkeeping is important for the following reason:

• It helps you monitor the progress of your business.
• It useful when it comes time for preparation of the businesses’s financial statements.
• It is essential when identifying the source of your accounts receivable and payable.
• It helps you keep track of the amount of your deductions.
• Ultimately Support items on your tax return.

Very often than not, people avoid going to the doctor because they assume they don’t have any health issues which is not a good idea. The worst mistake a business owner can decide to make is to estimate their deductions on their tax returns based on bogus assumptions. The Boss encourages business owners to keep good records, not just for tax season, but all year around so when notices for more information come around, you will not be frightened.

Just like annual physical ‘s are highly recommended, so is periodic review of a business’s records to ensure reliability and accuracy of the records kept. Using a bookkeeper and CPA will save you time and money in the long run. Have a seat and share some coffee with experience financial and tax professionals who will give advice on good recordkeeping tools.

Every business must keep records. Don’t let the Boss catch you by surprise and unprepared to respond. Good records will save you in times of need and out of season.

If you will like a couple of record keeping tools, please feel free to contact me at mvbalbuena@icloud.com.

GET READY FOR TAX SEASON!

The IRS is urging taxpayers like you to get their stuff together now for later to avoid any surprises and to ensure smooth transactions of your 2019 Tax Return. Tax season might open January 27 or 28, 2020. No official date has been announced yet. Here are some pointers:

1. Adjust your withholding with your boss.

The IRS encourages taxpayers to do a paycheck checkup to make sure the appropriates taxes are being withheld. This is very important for those who received a small refund last year than expected or became shook because of what you owed to Uncle Sam. A new W-4 form is expected to be released by the IRS by the end of this year. Take the time to check your paystubs and make sure you’re withholding is accurate. The IRS has a free Tax Withholding Estimator service that can assist you with how much you are actual suppose to be paying through the year. If you need assistant with this, I am here to help.

2. Gather and organize your documents, receipts, and all that jazz.

To avoid any refund delays, be sure to gather all your year-end income documents before tax season starts. W-2s, 1099, 1098, etc.

3. Renew your ITINs.

Do not wait until the last minute to do this. Any ITIN with middle digits 83, 84, 85, 86, and 87 will expire at the end of this year. Also, any unused ITIN that have not been used for the last three years will expire. The renewal process can take up to seven weeks. ACT NOW!

4. File your return electronically and use Direct Deposit.

This is the quickest way you can get your refund. By using this method you can expect to receive your refund within three weeks and even less.