15760 Ventura Blvd, Suite 610 Encino, CA 91436
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15760 Ventura Blvd, Suite 610 Encino, CA 91436
FREE CONSULTATION818-436-2775
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Personal, Affordable Payroll Services, Bookkeeping, and Tax Processing for Small Business throughout Los Angeles County.

Essential Documents Your Account Needs for Tax Season

No matter how prepared you might be, no one enjoys tax season if they’ll be writing a check to the IRS rather than receiving a check. If you’re a business owner and work with a firm that specializes in small business accounting in Los Angeles, then they’ll need specific documents from you in order to properly and fully prepare your taxes.

List of Capital Asset Activity

If you ever disposed of, bought or sold any type of capital assets during the year, then you’ll have to show them on your tax return. Inform your small business accountant and they’ll be able to print out your capital-asset activity so that they will have enough details to note any changes. If you have a listing that doesn’t describe the asset, make sure that you make a note of it.

Financial Statements

Financial statements include:

  • A cash-flow statement
  • A balance sheet
  • An income statement

When it comes to your taxes, companies that offer small business accounting in Los Angeles mostly use income statements. That being said, you’ll more than likely have to show your liabilities and your assets.

Vehicle Log

Business owners who use their own vehicles for company business will be able to claim part of the vehicle’s operating expenses as a tax deduction. This is done one of two ways. With the detailed method, you’ll take a complete tally of all vehicle operating expenses and divide the number of miles driven for business purposes and use that percentage on the operating costs. The simplified method lets business owners apply an IRS-accepted rate of mileage into the complete yearly business miles. In either case, try your best to keep track of the number of miles you drive your vehicle for business.

1098 Forms For Property Taxes and Mortgage Interest

More than likely your mortgage company gave you a 1098 form at the end of the year that detailed your payments for mortgage interest and property tax. Make sure that you have this form readily available in case your account asks for it.

By having these forms, firms that offer small business accounting in Los Angeles can help you complete your taxes faster and easier this upcoming tax season.