The 2012 tax season is here and deadlines are quickly approaching. Have you done everything for your business so that you are organized and prepared to file for your 2011 operating year? So are you really ready?
Not only do you want to ensure you are organized for 2011, but also for 2012. There is a lot of frustration and agony in compiling and organizing tax data at the last minute but there are some simple steps to help you relieve that headache you are no doubt experiencing.
1. Pack up everything from 2011. Make room and get it out of your office. You should select a method of storage that best fits your company style as well as your own personal style. For example, all your vendor files, appointment books, receipts, and bank records could be stored in a plastic tub marked with the tax year. There are some files that should always remain in the office, but they should still have their own file. The more permanent files are insurance policies, capital asset files, investment accounts, capital improvements and estate files. Please follow up with your accountant for a list that is specifically for you to ensure that you have adequately covered all your bases.
2. Next be sure to shred older files. The IRS does require that you maintain certain files for a specified period of time depending on your industry and paperwork. Visit www.irs.gov and review publication 583 for record retention guidelines. In addition, it is good rule of thumb in Indiana to retain records for one additional year since Indiana has a state income tax.
3. Collect 2011 documents. If you didn’t do this at the beginning of last year, create income tax files for both 2011 and 2012. As transactions occur and the year passes, be sure to file all appropriate transactions in the file. For 2011, it is going to be merely going back and reviewing all transactions and placing them in the correct file. You may create files for meals, entertainment, travel, mileage, postage, etc. Keep in mind, the files should reflect the industry in which your company operates. Finally, be sure you create and keep a file for any third party documents such as 1099s, K-1s, W2s, 1098s, etc. By filing and organizing, it will be much easier and quicker not only for you but also your accountant or tax pro.
4. Lastly, go digital, go green. If you have not done so already, it is time to purchase an electronic accounting system such as QuickBooks. Typically, you may use QuickBooks for virtually any accounting need and it is very user friendly. Comprehensive reports may be prepared with a swift movement of a key command. But a word to the wise, always back up your work. A computer crash can wipe out everything you have worked so hard on. There are many resources to assist you in backing up your work with off site servers. Your back up schedule should be regular, such as every evening or weekly, again depending on your industry and level of activity.
In conclusion, this is just a bit of information to help you get started. Be sure to follow up with your accountant about new tax legislation and laws so that you are in compliance for the tax reporting year. Any organization you can do ahead of time, will ultimately make your tax season less stressful now and in the long run.
Heather Penney is the regional director for Indiana State University’s Indiana Small Business Development Center.
Business
BUSINESS CENTS: Are your business books in a shoe box?
- Business
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- RESTAURANT INSPECTIONS: May 21, 2012
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EYE ON THE PIE: Use to be close tie between output, employment
Crusty Crawford joined our lunch table with a pronouncement. “We’ve always assumed a close tie between output and employment,” he said. No one responded.
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Employer opinions sought on students
A joint venture between Ready Indiana and the Indiana Department of Education is seeking employer input that will impact how Hoosier high school students are equipped for the workforce.
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Carlisle prison marks 20th anniversary
2012 marks the 20th year of service for the Wabash Valley Correctional Facility, going on line with its first offenders Dec. 10, 1992.
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SOCIAL SECURITY: Why young workers should care about Social Security
Summer will be here before we know it.
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BUSINESS CENTS: Does your staff understand pricing?
Many companies feel as though their staff will follow instructions and implement price strategies as instructed.
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Valley Child Development Center receives grant
Valley Child Development Center has been awarded a $5,000 grant from the Terre Haute Day Nursery Foundation through the Wabash Valley Community Foundation.
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Exec offers advice on becoming startup entrepreneur
Sam Clemens, chief product officer of Cambridge, Mass., startup company Insight Squared, gave Rose-Hulman Institute of Technology students insight on how to develop a startup business.
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Newsmakers: May 20, 2012
Leland Phipps, family practice physician at Paris Community Hospital/Family Medical Center, has been re-elected to membership with the American Academy of Family Physicians.
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Alumna to serve as VP for Rose-Hulman Ventures
Rose-Hulman Institute of Technology alumna Elizabeth M. Hagerman is returning to her alma mater to serve as vice president for Rose-Hulman Ventures, the institute’s successful innovation space that has spawned careers and entrepreneurial enterprises throughout Indiana.
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Summer Sidewalk Sale set
Marshall Main Street’s Downtown Summer Sidewalk Sale is planned from 8 a.m. to 2 p.m. June 9.
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Oil drops to lowest level in 6 months
The price of oil dropped to a six-month low Tuesday on concern that economic uncertainty in Europe could hurt demand for crude.
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Adidas initiative: ISU students develop business improvement process at facility
As Indiana State University students cruised Interstate 70 on Friday afternoons from Terre Haute to Indianapolis, they were looking forward to reaching their destination.
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BUSINESS BRIEFLY: May 13, 2012
An evening of networking and education for Clark, Crawford and Edgar counties regarding branding, marketing and tourism development opportunities is planned for 6:30 p.m. May 21 at the Heath Museum on the square in downtown Robinson.
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Wendy’s partners with Riley Hospital
For just $2, customers at participating Wendy’s restaurants in the Evansville/Terre Haute area can get free Jr. Frosty desserts through Dec. 31 while supporting Riley Hospital for Children at Indiana University Health.
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Marshall Chamber to stage annual golf outing
The Marshall (Ill.) Chamber of Commerce invites golfers to its annual golf outing scheduled for June 8 at the Marshall Golf Course.
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ON THE MOVE: May 13, 2012
McKenze Rogers has joined Williams Randall as an account supervisor.
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Seminar teaches seniors to fight fraud
The Federal Trade Commission estimates that 25 million Americans are victims of consumer fraud each year.
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EYE ON THE PIE: Economic tools for consumers, workers, business owners, officials
My friend is a carpenter. He has two heavy boxes of tools and several other containers with stuff.
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SOCIAL SECURITY: Potential Medicare savings for mom
Given the current economic climate, buying a nice gift for Mother’s Day may be more difficult than in years past.
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‘Best Places to Work’ honored at banquet
Companies raising the bar with their workplace practices were recognized on May 3 at the Indiana Roof Ballroom by the Indiana Chamber of Commerce.
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NEWSMAKERS: May 13, 2012
Susi Willis, CPA and partner in Larsson Woodyard & Henson, LLP, was recently presented with the Distinguished Service Award by the Indiana CPA Society at its annual CPA Celebration at the Indiana Roof Ballroom in Indianapolis.
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Indiana Rail Road wins Family-Friendly Award
The Indiana Rail Road Co. has won the Terre Haute Chamber of Commerce’s “Family-Friendly Business Award” for 2012 based on the company’s highly successful employee wellness program.
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Government cuts summer gasoline price forecast
The government says gasoline will be cheaper this summer than previously expected thanks to a drop in the price of oil.
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Mall operator becomes biggest real estate company
The nation’s largest shopping mall operator is now also the country’s largest real estate company.
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Dealership to celebrate first year
The 500 Automotive Group in Clinton will celebrate its first year in business with an big birthday bash at the dealership on Friday and Saturday.
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EYE ON THE PIE: Compensation levels did not cause the recession
America is still fascinated with “The Price is Right.”
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Old National begins year with strong first quarter
Old National Bancorp reported 1st quarter net income of $21.7 million, or $0.23 per share.
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Enroll in disaster preparedness class
The University of Illinois Extension is offering a disaster preparedness course on May 23 for Clark, Crawford and Edgar county businesses called Ready Business.
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Newsmakers: May 6, 2012
• Dr. Haytham Mansour
• Terre Haute Regional Hospital
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