Tax Preparation Checklist for Entrepreneurs & Freelancers
by Agro Accounting CPA Accounting for Artists, Freelancers & Creative ComPaying
taxes out of our income to the government is not just a legal responsibility,
it is a civic duty! We do not pay taxes
for no constructive reason. As we pay
taxes purposefully, they are used for the betterment of our country and to
provide public services to us. So, if we
pay our taxes, then we are benefiting everyone, including ourselves. To follow, when you are doing your tax preparation for entrepreneurs or
tax preparation for freelancers,
there are certain things that you need to handle beforehand.
You Should Prepare Your Supporting Documents
When
preparing your supporting documents, understand your responsibilities, which
include collecting all of your records on expenditures and more.
To
prepare these supporting documents - balance sheet and others - to match your
balance sheet and to carry out all of your bookkeeping work takes time. When you are doing your tax preparation for entrepreneurs or tax preparation for freelancers, do it thoroughly and
precisely. Your balance sheet should
match. Further, the primary documents
you need to collect and prepare are:
●
Mileage
Logs for Your Vehicle - If your vehicle is completely dedicated to your business,
then you can count the total miles you have travelled. However, if you use your car for both personal
and business purposes, then you need to note logs distinguishing between the
two. In particular, you need to make
note of business miles travelled.
●
Your
Expenses Records - When you are
preparing your income taxes for
entrepreneurs or income taxes for
freelance workers, your expense records should be properly stored and
organized. Keep in mind that all of your
business expenses are filed on your income tax return and may come under
scrutiny during an audit.
●
Your
Bundle of All Receipts, Bank Statements & Invoices - All
paper and electronic receipts of expenses (see above), bank statements for the
year and invoices should be documented in your accounting files. To keep your books clear and managed, you
need to keep a record of all income and expenses written and acknowledged.
●
Balance
Sheet of the Business, and Your Business Ledgers - For
the balance sheet of your business, keep all debits and credits in
balance. All of your transactions,
amounts paid and amounts received will be calculated and recorded in your
business ledgers. A perfectly matching
balance sheet might need to be filed with your business tax return. This work is generally best done by a
professional accountant for
freelance workers or accountant
for entrepreneurs.
● Every Proof of Income - When you are preparing your income taxes for freelance workers or income taxes for entrepreneurs, you need to record every sort of income that you have earned and the amounts of which you have received.
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Created on Aug 10th 2020 06:52. Viewed 425 times.