2021 Business Taxes: Year In Review
We don’t want to brag but…
Okay, maybe we do.
As of February 15th, U-nique Accounting has filed 99% of our client business tax returns for 2021.
- No overworked employees
- No back-and-forth scrambling with clients
- No searching for documents and filling out forms
- And certainly no rushed or error-prone filings.
How do we do it every year?
Aside from the 5 cups of coffee we inhale, it all boils down to the modern technology and integrated processes we harp on so much about.
When you have the right tools and systems in place, and automation flowing, the end of year filing simply becomes another task to tick off.
In this blog, we’re going to share a few of our favorite tips for bringing your business accounting up to speed with best practices for 2022.
How many of these best business tax practices can you tick off in 2022?
1. Outsource Your Pain Points
Where do you spend the most time in your business? What is the most painful? Successful business owners outsource or automate any processes or tasks that waste valuable time.
Note: Your business and personal taxes are a great example of this! Outsourcing the accounting part of your business will not only save you money (in tax savings), but also time and headaches.
2. Use Great Tools – Like Xero
Spoiler: There isn’t a software tool on the list that will make a bigger impact come tax time than Xero.
Xero is by far the simplest, most powerful, online accounting software we’ve used.
It integrates with your bank accounts, bill payment platforms, and all of your favorite apps, for an unbelievably quick and seamless month-end process.
When it comes to the end of year, everything you need for your business taxes is right there – all in one place.
3. Nail Your 1099 Process
We wrote an entire blog about the 1099 process recently.
From now on, gather a W-2 form from every single vendor before you do business with them.
Use a software like Track1099 to email out the 1099 request.
Your vendor can complete the form as a fillable PDF so everything is typed and legible with no misinterpretations. And they can electronically sign the document and quickly send it back.
Never again will you wonder if you are missing a W-9 form from any vendor, as the right software will let you know of any uncompleted requests in the system.
4. Stop Using Manual Checks
Do you waste time tracing manual checks to vendors? Wondering if it got there?
In 2022, we can’t stress enough how simple (and necessary) it is to transition to ACH and/or E-check payments and never worry about your vendor payments again, as well as bank fraud.
Using the right payment processing software, these payment methods cost $0.00 and you avoid bank fraud, avoid waiting for mailed checks to clear, and have a clearer picture of your cash flow.
When it comes time for your business taxes, all of your payments will be in Xero, in one place, for your accountant to reconcile.
5. Go Paperless
Are you still sending a box of receipts to your accountant at the end of the year?
Stop doing that!
Not only are you probably paying for your accountant to enter everything manually (more about that in the next point), but there can be missing information from losing receipts or faded ink.
Use a software like Dext to quickly scan your receipts and automatically upload all of the details instantly.
At the end of the year… you guessed it! All of your invoices, receipts, and payments will automatically be synced in one place.
6. Find a Better Accountant
How many of these best practices do you already do?
If all of them, you can skip this point!
However, if you’re still struggling with lagging business taxes, a box of receipts, and chasing after W-9 forms… it’s probably time for a new accountant.
And we’re not just saying that because we are one!
A good accountant can not only make tax time easier, but they’ll make your life easier throughout the entire year.
Find an accountant who excels in automation and simplified business processes. Each week, you should know exactly where your cash flow stands, and each month you should have a good idea of the direction you’re heading.
By staying on top of it all throughout the year, tax time will truly be a blip on the radar.
Need Help With Your 2021 Business Taxes?
If you are in search of a good accountant to implement modern best practices, we’re here to help!
By automating and digitalizing your accounting processes throughout the year, your end-of-year business and personal filing will become a breeze.
At U-Nique Accounting, we’re already 99% done with our clients’ business tax returns for the year.
We specialize in simplifying and automating general business & accounting processes so you can spend more time doing what you do best – running your business.
Book your 15-minute call to learn more about the services we offer and how we work to support your company’s financial health.