How can I get my business caught up on taxes and paperwork?
I haven’t filed taxes since incorporating and have done zero in the book. Keeping it meetings, etc. and I need to know what are the steps to get my business back on track. Would it be better to start over? I do not want to do this, I know I am in the wrong but I wasn’t sure my business would be profitable and the first year it really wasn’t. This year it is starting to take off and I want to know the steps to take to get everything on the up and up.
This is what's referred to as reconstructed records project, which I have plenty of experience in, having done this for startup founders such as yourself and other businesses that were somehow profitable while run out of the owner's checkbook (not recommended :-). Step 1 is to get the books in order, then Step 2 is to get with an experienced CPA or Enrolled Agent who likes to rehabilitate those in tax arrears. They are on your side and will manage the process for least impact on you and your business.
I am in California, which is no problem concerning creating your books, as we'll use bank statements and an online accounting package that you and your CPA/EA can access in FL. I have a CPA/EA network I can tap to find an effective tax practitioner near you. You can contact me (Murray) at firstname.lastname@example.org if you want to move forward.
Tax day is right around the corner, just checking in, have you been able to get caught up on filing?
To get your business back on track, you need to do two things. First, get your books in order so you can track and stay on top of expense reporting in the future. Second, find out if you have any missed or unpaid taxes that you need to pay in.
The Business.com team recently published two articles that I think you will find helpful when sorting through your books.
1. Is It Time to Hire a CPA? This guide will help you assess the complexity of your business and its books, so you can decide if filing your own taxes is feasible this tax season. If you aren't prepared, this guide lists other options for filing like using a third-party tax service or hiring a tax professional.
2. What to Do If You're Behind on Your Taxes This guide recommends the steps to take if are behind on making tax payments. There are resources and professionals you can communicate with to avoid any additional fines while your business gets caught up.
Starting over is not the answer. You are responsible to report taxes - and, good news, if you had a loss as you think yr. 1, it can be used to offset other income on your 1040 or in another year.
If you can't hire an EXPERIENCED bookkeeper to come in and sort out the mess, then give those results to a tax preparer, make appointments on your calendar with yourself - like 2 hours every other night or all day Sat & Sun every wkend til done. Do not cancel out with yourself. If a horrible incident conflicts, you must reschedule the time just like it was with someone you are paying $200 an hr. Start one page at a time. If you ran all money through one ckbk (as you should) it will not be as bad as you think
Good Luck, Charlene Finerty