Frequently Asked Bookkeeping Questions During Tax Season

Tax season can sometimes be stressful, especially when your books are out of order. Here are some questions commonly asked by business owners: 

1. Which documents are required? 
Profit and loss statements, bank statements, payroll reports, and deduction receipts will all be necessary. 

2. What steps can I take in order to maximize deductions? 
Consider tracking expenses like office supplies and marketing fees, as well as your home office space and how much of it is being used. 

3. What if my books are not tidy? 
Attempt to try bank reconciliation and transaction categorization, and then possibly get a bookkeeper. 

4. Should I file 1099s?
Only for independent contractors that were compensated over $600. 

5. Is it better to use cash-based accounting or accrual based accounting? 
Cash does real time tracking; accrual records at the time the revenue is earned. 

6. What can I do to reduce errors? 
Keep business finances separate, reconcile accounts on a regular basis, and make sure to do data backups. 

7. When is it time to seek professional aid?
Get bookkeeper assistance when you are behind, buried under a mountain of work, or just unsure what to do. A bookkeeper will save time, and eliminate stress.