Prepare for Tax Season the Smart Way: What You Should Do Today

At a glance

• The main takeaway: Are you prepared for tax season? Discover seven key areas your business should prioritize to effectively prepare for a smooth filing process.
• Impact on your business: To avoid costly penalties or delays during tax season requires attention to detail, secure communication, and early action.
• Next steps: Do you need help to meet the April 15^th (or March 15^th) tax deadline? Aprio’s Tax advisors can navigate you through the upcoming tax season.

Schedule a consultation

Full story

Tax filing season is approaching and it’s important to be proactive in preparing and organizing the necessary information to ensure a smooth filing process. In this article, we share key areas your business should focus on to be fully prepared and make the most of the time with your tax advisor.

Use secure portals for document sharing

Security is paramount when transmitting sensitive financial information. Do not send any documents to your tax advisor via email or unsecured methods. Make sure to use your CPA’s secure portal for sharing tax forms, financial statements, or other sensitive documents. This protects your business’s information from potential breaches and ensures compliance with data security protocols.

In addition, it’s important that everyone on your team involved in the tax process knows the proper procedure for securely sharing documents with your tax advisor.

Send documents to your CPA as soon as they come in

Timing is everything when preparing for the April 15th (or March 15th) deadline. Do not wait until the last minute to send your CPA important documents. As you receive final tax documents from third parties, such as W2s, 1099s, and K-1s, make sure to upload them to your CPA’s secure portal right away. Waiting too long can lead to rushed filings, missed deductions, or errors.

Stay organized and communicate promptly with your tax advisor to allow them ample time to process your documents and prepare your return accurately. New documents could lead to new questions from your tax advisor. Being proactive and providing information to your CPA as early as possible will yield the best results for all parties.

Respond fully to the client organizer

Individual taxpayers can also be more prepared by responding fully to the client organizer sent by their CPA. This is a crucial step in ensuring accurate and timely tax preparation. This includes answering each yes/no question and providing additional information when prompted. The organizer is designed to gather all the necessary information about your income, expenses, deductions, and financial changes for the year.

By completing it thoroughly and providing all requested documents, your tax advisor can avoid delays, reduce the risk of errors, and help to ensure that you take full advantage of potential deductions or credits. Promptly responding also allows your CPA to identify additional information they may need and allows more time to address complexities in any tax situation.

Finalize your books

To file a tax return, your balance sheet and income statement must be completely closed out for the tax year. Accurate and finalized financial statements are critical for tax return preparation. This is the time to ensure all income, expenses, and liabilities are recorded correctly. Pay particular attention to:

• Verifying that all transactions have been posted to the correct accounts
• Reconciling bank statements
• Adjusting any errors or inconsistencies in the books

If your books aren’t closed, your CPA will not be able to prepare your tax return, and there may be filing delays.

Address any open matters from when your extension was filed

If your business filed for an extension earlier in the year, now is the time to review any open matters related to that extension. Take the time to confirm whether:

• A response has been provided to all of your CPA’s questions. Leaving any questions unresolved could create bottlenecks during the preparation process.
• All additional documents that your tax advisor requested have been gathered and submitted. Missing information will delay your filing and could trigger penalties if your taxes aren’t submitted on time.
• Your Self-Employed Retirement Plan has been funded. Contributions to certain retirement plans may need to be made by the filing deadline, so ensure this is handled.
• If applicable, contact any relevant partners or points of contact to obtain your K-1s or an estimated timeline of when they will be received. This information is vital for completing a tax return.
• If your business is responsible for issuing K-1s to partners, ensure they have been distributed well in advance of the deadline.

Review estimated payments

As part of filing your 2023 tax return, your CPA may have provided you with federal and state estimated tax payments for the current year. To avoid surprises, it’s important to communicate with your tax advisor regarding any estimated tax payments made throughout the current year. Specifically, your CPA needs to know:

• The 1^st, 2^nd, 3^rd, and 4^th quarter estimated tax payments were made as directed and on time. Missing a payment or paying late can result in penalties.
• The exact amounts paid, the recipients of the payment (whether the IRS or a specific state), and dates payments were made. Details about how you paid (online, check, etc.) are also helpful.

Providing documentation of these payments can help prevent any confusion while preparing your tax return. A confirmation page from the IRS or state government website or copies of checks can ensure there are no discrepancies or errors.

Discuss business goals to plan for future tax strategies

Discussing future business plans with your tax advisor is crucial for effective tax planning and financial strategy. By sharing your goals—whether it’s expanding operations, launching new products, or exploring new markets—your CPA can provide tailored advice on potential tax implications and benefits. This proactive conversation allows you to identify opportunities for tax deductions, credits, adjustments to planning estimated tax payments, and strategies to optimize cash flow.

Additionally, understanding how these plans align with changing tax laws can help you make informed decisions that minimize tax liabilities and support sustainable growth. Regular discussions with your tax advisor can help to ensure that your business remains agile and well-prepared for any financial challenges ahead.

The bottom line

Meeting the April 15^th (or March 15^th) tax deadline requires attention to detail, secure communication, and early action. Focusing on the areas above can help to ensure your tax advisor has everything they need to file your return smoothly and avoid potential penalties or delays.

Proactive tax planning is key to reducing stress during the tax season. Aprio’s Tax advisors can navigate you through the upcoming tax season with ease. Schedule a consultation today.