Nobody likes the IRS, but they are an ever-present reality coming to take your money. The job of your accountant is to make sure that you and the IRS are doing what you’re supposed to. Although we aren’t accountants, as in we don’t deal with the IRS directly, here are some tips to make sure you’re ready if Uncle Sam comes calling:
- Balance your books. I don’t mean right before tax day, I mean at least every quarter. We balance our clients books every month. The reason to do it so often is that if there is a mistake, it is easier to catch and we aren’t digging through a year’s worth of work to find the error. This is absolutely the most important tip. It will save you, the bookkeeper, and the accountant days of work.
- Have money set aside for taxes. You know taxes are coming. You may not know how much you need to pay, but if you set aside money for taxes, you’ll be much less anxious when the time comes to pay them. Our clients have a bank account specifically for setting aside money for taxes.
- Stay in contact with your accountant. If your accountant is up to date with your work and how much you’ve been making, he or she will have an easier time helping you. Don’t be neglect your relationship with your accountant; they’re your greatest advocate if the IRS comes calling.
The IRS doesn’t have to be looming over you. As long as your accountant and bookkeeper are up-to-date, and your books balance, you should be fine. The IRS is only scary when you don’t prepare.