Tax Season – Things to consider with the filing deadline only a few days away.

Special Note: Although 2010 Personal Federal Tax Returns and Payments are Due April 18th of 2011 most all other Federal and State Tax Returns and Payments are Due April 15th of 2011.

Tax time is a busy time for most accountants, however when tax planning occurs during the year, tax season is a more efficient process. When clients and accountant don’t have a plan the tax preparation process can become confusing and frustrating, build on your challenging experiences so future years can become more efficient and effective.

Tips to become more efficient as you wrap up 2010 and prepare for 2011:

  1. Don’t be afraid to extend your tax return! Meeting with the right qualified accountant can still result in tax savings discussions and opportunities for 2010. If you file your return without being properly prepared it could result in a loss of opportunity.
  2. Stay on top of your accounting for 2011. Having a system and staying current on your accounting is the first step in getting the proper documents ready to start planning for the current year.
  3. Keep open communication with your accountant. Tax planning and preparation is not a process it is the execution of a plan. Be flexible, listen to suggestions and provide feedback so you and your accountant can work together in building, understanding and executing your business and tax plan.
  4. Planning for 2011 can start now. Get a head start by scheduling your first planning meeting for 2011 in the next few months.
  5. When the relief of tax planning and tax preparation is complete, focus your energy on your business.Where do you fit in best for your business? What value do you bring to your company? How can you improve your products and services? What are your sales goals for this year?

Final Tax Tip For Today – Business owners often ask me what is a business deduction? A business deduction is any expense you can reasonably justify as a business deduction. Therefore the true answer to that questions lies within your own analysis of your business and commitment to look at each expense you incur and determine, is this expense a business or personal expense?. If it is business, the business should pay for the expense. If it is personal it should be paid from personal funds, not your business.