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5 Accounting To-Dos to Prepare Your Business for Fall’s Extended Tax Deadlines

Learn how All In One Accounting can ensure your business has accurate accounting information to share with your CPAs in advance of September/October extended tax filing deadlines.

Accurate accounting is how you reduce errors on your tax returns. This may sound obvious, but the amount of tax you wind up paying—or not paying—depends more on accurate numbers than how well tax law is applied. And if you’re simply turning your books over to a CPA firm to prepare your tax returns, you’re running the risk of inadvertent errors that can come back to haunt you.

How CPA firms approach accounting.

When you take the books to a CPA firm, they more than likely won’t question the information you’ve provided unless there are obvious errors or inconsistencies. They may rely on what you’ve given them in good faith without asking for verification.

A CPA’s skill set and value lie in their area of expertise— tax preparation, not bookkeeping. Not every CPA is a tax preparer and not every tax preparer is a CPA. In general, bookkeepers are experts in managing day-to-day finances like payroll and expenses. CPAs specialize more in taxes and strategic planning.

Why it’s important to work with an accounting firm before you do taxes.

Whether you’re a small business, a mid-size organization, or a self-employed individual, a good accountant or accounting firm will take the time to understand you, your business, and your unique financial situation.

A professional accountant will have a strong understanding of the tax implications that are associated with your business’s financial activity. They will also consider all your financial goals and provide personal attention to minimize tax liabilities and avoid a potential IRS audit.

Additionally, accountants are up to date on the latest tax laws and regulations, helping you optimize your filing for maximum savings.

Working closely with an accounting firm or an accountant is designed to bring you the following:

  • Accurate accounting, financial reporting, tax estimates, and timely filing
  • Answers to any and all financial questions, including tax preparation
  • In-depth knowledge of your accounting and business operations

One of the biggest advantages of working with an accountant or accounting firm is that they will have all the financial information your tax preparer needs ready in advance. If you are not there yet, use this checklist to ensure your CPA is set up for success.

Learn how All In One Accounting can ensure your business has accurate accounting information to share with your CPAs in advance of September/October extended tax filing deadlines.

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5-Step Accounting Checklist

  1. Make sure you have the basics
    • Each line item on your balance sheet
    • Supporting schedules or documentation
    • Payroll information
    • Benefits information
  1. Don’t forget items often overlooked or buried in the accounting that may be incorrectly reported:
    • Shareholder wages (matches to W-2)
    • Partner guaranteed payments
    • Shareholder health insurance (shown on W-2)
    • Shareholder Medicare premiums paid (shown on W-2)
    • Shareholder long-term care premiums paid (shown on W-2)
    • Shareholder life insurance premiums paid
    • Partner health insurance premiums paid
    • Partner life insurance premiums paid
    • Shareholder HSA payments made (may or may not be on W-2)
    • Partner HSA payments made
    • Meals and entertainment expenses paid (consolidated across expense accounts)
    • Meals and entertainment expenses reimbursed to the company from clients (consolidated across expense accounts)
    • List of fixed assets purchased and disposed of, including the full cost of placing in service (if separated in the accounting) and date placed in service or disposed of
    • Shareholder self-rental amounts separated from the accounting and a related 1099 for rents
    • Loans (copies of notes or verbal agreements) between the company and the shareholders or partners
    • Confirmation of cash infusions into the company from shareholders, owners or partners
    • Confirmation of cash distributions from the company from shareholders, owners or partners
    • Charitable donations (qualified) correctly classified (not as sponsorships) and consolidated into one account
    • Interest income correctly classified and consolidated into one account
    • Gains and losses from investment accounts consolidated into one account
  1. Report any changes to your business
    • Change in ownership, including ownership percentages, names, social security numbers, addresses, and dates
    • Unusual occurrences during the tax year like fire, theft, moving, or opening new locations, and how much they cost the business
  1. Make sure you have details on which states your employees worked in during the tax year
    • Employee wages paid by state
    • Rents paid by state
    • Inventory located in each state
    • Fixed assets located in each state
    • Revenue by state
  1. You should also include expenditures not included in your accounting
    • If some expenditures don’t affect cash, they may not be included in your accounting. For example:
      • Additional payments to shareholders, owners, or partners not reported in accounting because the recipients paid personally and were not reimbursed
      • Mileage not reimbursed by the company for shareholders, owners, or partners

How All In One Accounting ensures accuracy in your financial reporting.

All In One Accounting’s success is based on our ability to deliver complete accuracy and valuable financial perspective using a proven process that allows us to verify every balance sheet we review.

Our commitment to providing value, insight, foresight, and tenacious devotion to detail is the cornerstone of why we are best choice for accounting help. Let our expert team manage the routine tasks and financial analyses that bog you down, so you can focus on your core business.

Even if you’re all set up for your 2024 extended tax deadline, we can help get you ready for success in 2025.

To learn more about how All In One Accounting can be your smartest, most accurate choice to handle your accounting needs, all in one place, schedule a free, no-obligation tax support consultation today.

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