Do you have questions about tax preparation? Are you unsure of what this term actually means, or are you trying to learn how to do it on your own? Maybe you just need advice about who to hire, and when to begin. No matter what your concerns are regarding the importance of tax preparation, this is a crash course guide to tax accounting and what you need to be doing for the upcoming tax season.
FAQ About Tax Prep
For tax preparation in Denver, documents & resources you’ll need can be found easily online at our website. Nguyen & Associates strongly believe that everyone should strive to educate themselves about the importance of detail during the tax season, even if you hire a CPA to do most of your accounting. Our services include tax prep as an option, so we hope this guide helps you understand the importance of this area of accounting, and that you’ll allow us to be of service to you and your business for this upcoming tax season.
What Is Tax Preparation?
To understand the concept of tax preparation in the easiest way, think of this process as everything you do leading up to filing your taxes. From saving expense reports and receipts to optimizing your filing method, all of these things are considered tax prep. It’s the steps you take with tax season in mind, in hopes of lessening the burden and making it an easier process for everyone involved.
We all do some form of tax preparation, either individually or as a business, especially. For some, this is as simple as storing your W2 in a specific place, or saving a document of itemized expenses such as childcare, donations, etc. More complicated individuals or business tax filing will have more complex prep systems in place.
How Does Tax Prep Benefit Me?
Not only does having very specific plans for tax prep help encourage productivity and reliability within a workplace, it also helps to cut the time and money spent on filing during tax season. If your CPA has all of the information they need already prepared and ready, their workload drastically decreases. They will have less to do and will work quicker, giving you a smaller bill to pay.
When Does Tax Preparation Begin?
Tax preparation can start immediately in the new year, and often does for many businesses. Nguyen & Associates is very adamant on helping our clients establish functional systems for tax prep, so from January 1st, minor steps are being taken with the next tax season in mind.
Can I Do Tax Prep On My Own?
Absolutely! In fact, doing your own form of tax preparation is very recommended. While a CPA is helpful for many duties, such as general accounting and controller services, there are many small, detail-oriented work that someone without a history in accounting can easily do on their own. It’s been proven that businesses who use a tax preparation service or method are 77% more likely to have a more successful tax season when it is time to officially file.