Prepare Your Clients For Tax Season
It’s coming up fast and seems to be moving faster. What is it that I’m talking about? Is it Christmas? or New Years? No, I’m talking about the 2006-2007 tax season. As your client’s accountant and bookkeeper you are in the unique position to be able to assist those you are doing business with. Doing their taxes? Not so much (if you are considering adding to your service menu tax preparation click here) but in the very least you can steer them in the right direction.
The following are three ways you can be of service to your clients this tax season:
1. Tax Forms – Business and Employee Depending on the type of business your client is running you can send him/her in the direction he/she needs to go to get all their tax forms for filing their taxes. You can also, because you are intimately familiar with the company’s financials, be able to guide (for an additional fee of course) to the IRS required tax forms This IRS Link takes you right into the IRS Web site that hosts all the general tax forms for small businesses. It is also a fantastic resource for you!
2. Tax Breaks / Deductions As the Profit & Growth Expert you are trying to become for your clients, and with your knowledge of what they have done during their fiscal year, you can steer them in the right direction with their company’s tax preparer. For instance, you could suggest the following depending on your client company: the tracking of the company’s petty cash expenses; the employment of their children in the business; if they’re a homebased business give them the financial information that they can use to gain the deductions the IRS allows in rent, or mortgage interest, utilities etc.; The ever important deductions possible for travel and meetings expenses as well. All the receipts you have them save, so that you can track the expenses of the company can also be a source for deductions, keep that in mind.
3. Bookkeeping “P’s and Q’s” You also need to take into consideration, again depending on your client company, on what they could be expected to bring to their own tax preparer. Things like Payroll deductions with it’s various tangents of federal state and local income taxes. Deductions taken out of employees paychecks for Social Security and Medicare, as well as possible garnishments. Let’s not forget the federal unemployemnt insurance as well as the state’s unemployement programs. Things get even more complex if your client business operates in more than one state or if some of your employees live in one state and work in another. Help them better prepare to go see the “tax man”.
Hopefully this article jars some ideas for you to be able to provide to your clients to get their business taxes taken care of. When you are looking after their best interests, they will be more inclined to take care of you both in work and in compensation. All of these examples are just a place to start when you are preparing your client company for the filing of their business taxes, please refer to the Universal training materials and for those who still have it available to them, Universal’s very own Support Coach. If you are considering adding to the services you want to provide Tax Preparation click here to get more information about what’s all involved with Universal’s Professional Tax Preparation Certification.