Making Sure Your Books are in Order for Tax Season - CFO Source
Maximizing Profits, Minimizing Taxes,
And Finding Capital For Our Clients

Making Sure Your Books are in Order for Tax Season

Tax season can be a stressful time for business owners, but with proper preparation and organized financial records, you can make the process much smoother. At CFO Source, we specialize in helping businesses streamline their accounting processes so tax season becomes less of a headache and more of an opportunity to ensure your financial health. Here’s a step-by-step guide to making sure your books are in order before filing your taxes.

Making Sure Your Books are in Order for Tax Season

Start Early

Waiting until the last minute to organize your financial records can lead to errors, missed deductions, and unnecessary stress. Instead, start reviewing your books well in advance of tax deadlines. Early preparation gives you time to address discrepancies, gather necessary documents, and consult with your accountant if needed. Set a timeline for reviewing and organizing your records, aiming to finish at least a month before tax day.

 

Reconcile Your Accounts

Reconciliation involves matching your accounting records with bank and credit card statements to ensure accuracy. Any discrepancies, such as missing transactions or double entries, should be corrected immediately. This step is crucial for ensuring that your financial statements are accurate, which is critical for preparing taxes and avoiding penalties. Using accounting software can make reconciliation easier, but you should also double-check high-volume accounts for potential errors.

 

Organize Income and Expenses

Review your income and expenses for the tax year, ensuring they are categorized correctly. Misclassified expenses or unreported income can lead to complications during tax filing. Proper categorization maximizes deductions and minimizes the risk of audits. Maintain a consistent chart of accounts and review your expense categories regularly to avoid confusion, ensuring every transaction is accounted for in the right place.

 

Gather Documentation for Deductions and Credits

Tax deductions and credits can significantly reduce your tax liability, but proper documentation is essential to claim them. This includes receipts, invoices, and proof of charitable donations. Incomplete or missing documentation can result in disallowed deductions or penalties during an audit. To make this process easier, consider using digital tools to store and organize receipts throughout the year so they’re easy to access when tax season arrives.

 

Review Payroll Records

Payroll can be one of the most complex areas of tax preparation. Ensure your payroll records are accurate, including employee wages, benefits, and tax withholdings. Errors in payroll reporting can lead to costly penalties and compliance issues. Working with a payroll provider or accountant can help ensure that your payroll records meet federal and state requirements, reducing your risk of mistakes.

 

Consult with a Professional

If you’re unsure about your financial records or tax obligations, consulting with an experienced accountant or CFO service can save time and money. Professionals can identify opportunities for savings, spot potential issues, and guide you through the filing process. Their expertise reduces errors, improves compliance, and helps you make strategic tax decisions. 

 

Partner with CFO Source for Tax Season Success

At CFO Source, we’re dedicated to helping businesses keep their books in order and navigate the complexities of tax preparation. From QuickBooks support to strategic tax planning, we have the expertise to ensure your finances are in top shape.

Ready to make tax season stress-free? Contact CFO Source today to schedule a consultation and take the first step toward financial peace of mind.

What Our Clients Say...

"We struggled for several years with high turnover in our bookkeeper position, which resulted in missed billings and duplicate payments. Craig Kershaw was able to locate a high caliber person who quickly took over the accounting and is now helping to expand the business into new markets. I no longer worry about whether my accounting is being done properly."

-Bryant Brambeck, Owner, Liberty Emblem Company

Does Your Company Need
CFO or Accounting Support?
REQUEST A
COMPLIMENTARY
ANALYSIS
  • This field is for validation purposes and should be left unchanged.

arrow Click to View the Areas That We Serve arrow

Regions Served

  • Frederick County: Frederick (21701, 20702, 21703, 21709), New Market (21774) , Mount Airy (21771), Urbana (21704), Ijamsville (21754), Walkersville (21793), Libertytown (21762), Damascus (20872), and more.

    Howard County: Clarksville (21029), Columbia (21044), Cooksville (21723), Dorsey (21075), Elkridge (21075), Ellicott City (21043), Fulton (20759), Glenelg (21737), Glenwood (21738), Granite (21163), Hanover (21076), Highland (20777), Jessup (20794), Lisbon (21765), Marriottsville (21104), North Laurel (20723), West Friendship (21794), Woodbine (21797), Woodstock (21163), and more.

    Montgomery County: Olney (20832), Damascus (20872), Laytonsville (20882), Silver Spring (20910), Clarksburg (20871), Gaithersburg (20878), Germantown (20876), Bethesda (20816), Chevy Chase (20815), and more.

    Baltimore County: Arbutus (21227), Catonsville (21228, 21250), Cockeysville (21030, 21031, 21065), Dundalk (21222), Edgemere (21219), Essex (21221), Garrison (21055), Lansdowne (21227), Lochearn (21207), Lutherville (21093), Middle River (21220), Milford Mill (21244), Overlea (21236), Owings Mills (21117), Parkville (21234), Park Heights (21215), Pikesville (21208), Randallstown (21133), Reisterstown (21136), Rosedale (21237), Timonium (21093), Towson (21204), White Marsh (21162), Woodlawn (21207), and more.

    Carroll County: Eldersburg (21784), Finksburg (21048), Hampstead (21074), Manchester (21102), Marriottsville (21104), Taneytown (21787), Union Bridge (21791), Westminster (21157, 21158), Mount Airy (21771), New Windsor (21776), Sykesville (21784), Woodbine (21797), Taneytown (21787), and more.

  • Washington, DC and Northern Virginia

cbs radio

AICPA MACPA FEI

Connect

facebook twitter linked in

Contact CFO Source

5515 Hudson Drive
Sykesville, MD 21784
phone icon 443-487-7733 | Fax: (206)415-2361
info@cfosource.net

certified advisor