Are you filing taxes for the first time? Or have you filed taxes on many occasions already? Regardless, if your tax returns are complex, you may need to hire the services of an accountant.
With the tax season just weeks away from closing, hiring an accountant could prove beneficial. It can give you the peace of mind you need, while the accountant handles all the complexities related to the tax filing. Here’s what your accountant would need from you before filing your taxes.
1: A detailed discussion with you before getting started.
The accountant would discuss your tax requirements in detail with you. He will find out whether you need to file taxes as a business or as an individual, and how your business functions. He will want to build a strong relationship with you, but that’s only possible if you share all the details with him. The accountant will need to fully understand the tax implications of your businesses and all the essential details.
You will need to explain some of the details of your business along with the related documents to your accountant. These documents could include investor plans, shareholder numbers, files for incorporation, TIN or tax identification number (for both state and federal taxes), previous years’ tax details, etc.
2: A specific mention of time and deadline for paying the tax.
The accountant will ask about your financial requirements and about your plans and objectives. They will tell you about their availability, depending on which you can send your requirements.
The accountant will lay out a schedule for the tax filing and take into consideration factors such as time frame for the deadlines, tax saving targets and complexity of the business. Once there is a plan in place, they go ahead with the implementation.
3: Submission of Financial Documents.
The accountant will ask you to fill in important financial documents that would help them prepare authentic and highly accurate tax files. It is not an easy task to arrange these documents.
They make use of cloud-hosted tax software such as Drake, Lacerte, ATX, ProSeries Tax software Hosting for this purpose.
These applications can track the accounting and financial transactions automatically and arrange them into different categories such as expenses or income. The documents will also have details on accounting and financial data such as expenses, loans and insurance plans.
4: Submission of Receipts.
It is also important to give your accountant proofs of financial transactions in the form of receipts. You will need to furnish proof such as donation receipts from various charitable institutes, bills on any business travels, hotel expenses, etc.
With our Tax cloud hosting services you will be able to maintain a constant communication with the accountant at various stages in the process.