Prepare to file your taxes in 2021 with these in mind!
Many businesses and families went through unexpected changes in 2020. The effects of the pandemic upended financial plans, forecasts, family plans, business goals and much more. This undoubtedly will have an impact when filing your 2020 taxes due to changes in the tax code for 2021. With COVID-19 came stimulus checks, programs like the Paycheck Protection Program (PPP), Pandemic Unemployment Assistance (PUA) and more depending on your business or personal need. We’ve been assisting businesses and families with their accounting and tax needs through the pandemic and will provide you with some tips to prepare you for filing your taxes this year.
Organize Records and Documents
For many, the main hurdle is getting documentation together. It’s important to have all your documentation in order to have a seamless filing experience. Keep all the tax documents that start coming in the mail early January in a folder and do not throw out any tax document that may look irrelevant. Many tax documents can also be downloaded online depending on the provider of the documents in case you can’t locate them. For example, many financial institutions provide tax documentation that can be viewed and downloaded when you access your account.
Review and Itemize Transactions for your Business
Whether you are self-employed, have a side business or own a home, you’ll need to ensure your transactions are correctly documented to claim certain deductions. The pandemic led to many working from home and you may be entitled to write-offs as a result. If you use a software like QuickBooks or use a spreadsheet for your records, take the time to review the transactions and put them in their respective categories. This will help your tax preparation process greatly. The benefits of having an accountant who assists with monthly bookkeeping is advantageous, as the monthly management of your books throughout the year keeps your transactions correctly labeled. This prepares you better for tax season and makes things easier for you and whoever is assisting with filing your taxes.
Note Life-Changing Events
Many life-changing events happen year over year, but have been commonly happening since the beginning of the pandemic. Changes like getting married, getting a divorce, a death in the family or retirement may qualify you for tax breaks. Your accountant or tax preparer should be aware of any life-changing event so they can help determine which tax breaks you qualify for based on how your circumstances changed in 2020.
Here are a few things to consider to help prepare for filing your 2020 taxes. Having an experienced tax preparation service can be helpful due to the changes in the tax code. Finding the right tax forms or knowing what to fill out due to the changes caused by the pandemic can be confusing. It’s advisable in these uncertain times to consult with an experienced accountant or CPA to ensure you are getting the most out of your taxes, while being compliant under the current laws.
Motl Accounting can handle the most complex returns providing you the peace of mind you would want through the experience. If you are looking to prepare your taxes, you can talk to a tax professional at our West Dundee location to get your questions answered and your taxes filed properly. Contact us at 847-426-2100 or send us message via our Facebook Page to get started today.
Retirement often feels like the finish line of a marathon. No matter how far away your last day of work may seem, it’s a goal worthy of pursuit. Creating a retirement savings plan is akin to staying hydrated during a long distance race, otherwise known as your career. It’s a necessary task to ensure you’ll have enough left in the tank (or bank account) when it’s time to settle down.
For retirement, you get what you put in; learn about some of the preparations you can make today to maximize your reward down the road.
Business owners are typically jacks-of-all-trades, and in a competitive market, a versatile skillset is a key ingredient of success. Unfortunately, this means that some entrepreneurs end up stretching themselves too thin with responsibilities.
When one person is in charge of bookkeeping, marketing, and business growth, something’s got to give to ensure quality production and error-free work. Bookkeeping is an important responsibility no matter what industry you’re in, and it should always be a priority to complete it accurately and efficiently. Motl Accounting in East Dundee has a team of bookkeeping specialists to help Chicagoland’s small business community improve their company’s daily operations.
If you’re a small business owner in Chicago or the northwest suburbs that have been considering using outsourced payroll services for your company, you’re sure to have plenty of questions that the Payroll Vault team at Motl Accounting in Dundee can answer. After all, payroll is an essential responsibility for every company, so it’s important to know that yours is in good hands. Still, the benefits of enlisting an external payroll provider often outweigh this uncertainty for small and medium-sized businesses. When it’s time to dedicate more time to grow your business and less on number crunching, here are three questions you should always ask when evaluating payroll providers.
What’s your favorite season? At Motl Accounting in Dundee, our favorite is tax season. It’s the time of year when you should be thinking about the best way to complete your business filing. There are a number of ways to do your taxes, but a personal CPA for your small business like Charles Motl will provide the quality of service you should expect from a customized tax filing. Business taxes are an entirely different animal than your personal filing; they can be much more complex. The more complicated your taxes are, the more you need help from a professional to avoid those unexpected and tedious mistakes that will ruin the start of your year.
When you work with Motl’s certified public accountants, you know that the American Institute of Certified Public Accountants has qualified our professionals to practice in your state. This distinction means the accountants have passed a rigorous exam and have the experience to complete a professional tax return with accurate deductions on your behalf. Many businesses that we service have tried doing their taxes on their own before realizing how much they may be missing out by not understanding the complexities of deductions and taxations. We recently assisted a Photocopy business in Chicago by reviewing a statement they received and helped them save around $1800 dollars by taking a second look at the statement. It’s natural to panic when you receive notices from the IRS or State government, but we provide the peace of mind in such situations. That’s what we pride ourselves on. This among many reasons is why it’s advisable to go with a CPA rather than doing it alone. Read on for some of the strongest benefits.