Get a Head Start on Tax Season in Four Simple Steps

While the end of the year may seem like it’s a long time from now, it’s only three short months away. When you factor in the hectic weeks of the coming holiday season, that really only leaves a few weeks to pull your tax information together to avoid the stress that being unprepared for tax season can bring.

Now is the time to think about what information you will need for the 2013 tax filing season and the steps you can take in the next few months to minimize your tax burden. To help you get a jumpstart on your end-of-year planning and organization, here are a few tips courtesy of BW James Certified Public Accountants.

1) Take a look at last year’s income tax return and determine what documentation you will need to complete this year’s return.

2) Review the expenses, retirement contributions, and charitable giving that you have planned before year-end to determine if there are any additional deductions that you may still be able to capture for this tax year.

3) Organize your receipts and invoices by category and start scanning them so you are prepared for a paperless tax preparation process.

4) If you’re not already comfortable using your portal on our website, make sure to check how the process of uploading your tax documents works and how to review your return online so these tasks are quick and easy for you during tax season.

Getting a head start on your taxes now will benefit you come tax time. Providing us with your documentation as early as possible will allow us to process your return sooner so you can receive any tax refund you may be eligible for more quickly. In addition, preparing now will also help you avoid the stress of scrambling for information with a looming tax deadline before you. And remember, we are always here to help. If you have any questions, please give us a call at 281-420-1040 or visit www.bwjames.com 

Does Your Small Business Need a CPA?

Every year, entrepreneurs launch roughly 600,000 new small businesses in the United States, according to the U.S. Small Business Administration.  Starting a business is a risky venture, and when you’re getting started you may feel like the weight of the whole world is on your shoulders.

All small businesses have the option to take a great deal of that weight off of their shoulders and enlist professional tax and accounting help.  Making even a small error in your books can make a very large mess of your business finances.  Not to mention the fact that you just started a small business, you’re very busy.  Bringing in an expert to help with your financial services can free up a lot of time and help you focus on growing your business.  Undoubtedly professional help with financial planning and tax services are a great idea for your small business, but should you go with an accountant or a Certified Public Accountant (CPA)?

No matter the size of your business, even a single-person business probably needs the services of a CPA for several reasons:

A CPA is licensed by a state, and must keep current with tax laws in order to maintain that license, unlike Accountants.  The CPA exam is a rigorous process that includes many facets of financial and tax expertise.  After they are licensed, CPA’s also must comply with continuing education requirements, where regular accountants do not.

Almost all CPA’s are more familiar with tax laws than accountants are.  Knowledge of the tax code is a big part of a CPA’s licensing exam and CPA’s take tax courses each year to keep up to date on the Tax Code.  An accountant is classified by the IRS as an “unenrolled preparer” and an unenrolled preparer’s ability to represent a client in a tax matter before the IRS is very limited.  Alternatively, a CPA is eligible to represent you before the IRS and has full authority to represent you in an audit and execute claims on your behalf.  CPA’s can help you make more high-level business and tax decisions.

Bottom line, no matter the size of your business the professionals at BW James can help you be more successful and are available to become your partners and help take your business to the next level.  

For more information about BW James visit https://www.bwjames.com/