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Calling all tax preparers! The 2023 tax season will be here before you know it! If you’re a tax professional or tax preparation business, it’s time to gather and organize all of your business’s yearly financial information. 

The whole thing can be overwhelming—I know. That’s why I’ve put together this list of tips to help simplify the process for tax preparers. First-time entrepreneurs and business owners will find this especially helpful since the first couple years of a business’s life come with the biggest learning curve.

…While you’re here, register for my exclusive FREE online training, ‘Teach Me The Tax Game’ to learn how to increase your income with a new career in the tax industry, and make $100K in just 90 days!


1: Inventory All Of Your Business Financial Accounts


It doesn’t matter how you organize this list, just as long as you identify all of them! There have been instances where clients have opened bank or credit accounts and used them to conduct business. They then fail to include this information in their bookkeeping. Naturally, as a result, income, expenses, or both are underestimated. In order to avoid future issues, outline all of your business’s financial accounts.


What Types of Items are Typically Left Out?


Here’s an all-too-common example: one of our virtual tax preparation business clients received correspondence for not reporting income from her Square account. When she started her tax business, she opened a Square account using her social security number instead of the business’s EIN (employee identification number). They forgot to include it!


2: Confirm All Accounts’ Balances 


Once you have identified all your accounts, categorize the transactions into income and expenses. Depending on your business, this can be further sorted. In any case, the point here is to identify the inflows and outflows of money. You may decide that hiring an experienced bookkeeper is a good idea for this step. 

In the long run, it saves both time and potential penalties. Moreover, they help prevent forgotten financial accounts!


3: Account for Business Expenses You Contributed From Your Personal Assets 


First-year business owners and tax preparers may use so much of their personal expenses for business without even realizing it! A computer or mobile device is a good example of an important personal contribution to your business. But also keep an eye on expenses that aren’t so obvious, such as mileage, stamps, and client gifts–the little quickly add up!


4: Compile All Relevant Financial Statements


Accounting software systems are essential for generating these reports, and what you need varies depending on the size and nature of your business. 

For those who are mastering Excel but need to scale, WaveApps, which offers a free trial, is an excellent free alternative.


5: Give Your Tax Preparer or CPA All Financial Statements


In the same way that you know your business, tax preparers and CPAs know theirs. Take advantage of this resource! You may want to ask questions about your growing business, and new services you might consider adding, such as bookkeeping and payroll.

Either way, consulting with tax preparers who deal exclusively with other businesses is an excellent way to make sure that you’re staying on top of your taxes! 


Speak With A Tax Industry Expert


This coming year, set up goals and identify trends among tax preparers and within your industry that will help you manage cash flow and growth prospects.

If you’re not sure where to start, it’s time to consult with a tax business expert and I can help. With over a decade of experience starting and operating lucrative tax businesses, I have a lot to teach you about succeeding in the tax industry.

Let’s build something together.

Contact my team or register for one of my many online tax expert masterclasses to get started!


…And don’t forget! Register for my FREE online training, ‘Teach Me The Tax Game’, and learn how to make $100K in just 90 days as a tax preparer!



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