The dreaded tax season is upon us once again. As with any business, management companies need to ensure their tax filings are in order. The 2023 deadline to file is April 18th, so there are still a few months to manage your management company’s tax return prep. Here are a few things to remember:
Sort Out Your Timeline
Every year, businesses (and individuals alike, honestly) struggle to submit their tax returns on time. It’s a daunting, cumbersome task, and time can get away from all of us when important deadlines loom overhead.
Knowing application deadlines for all your various forms is an excellent step in tax preparation. Because the 2022 Tax Season officially began on January 23, 2023, businesses can now submit completed tax returns, but not all are prepared to do that.
If you’re not ready, the best first step in your management company’s tax preparation should be to apply for an extension as soon as possible. Businesses can use this extension to file taxes for the company beyond the original deadline of April 18, 2023. Getting in as quickly as possible means one less task on your checklist to worry you’ll forget about.
Once you sort that out, you can build the rest of your calendar. Remember to include the following dates at a minimum:
- January 31, 2023 - Send W-2 forms to employees AND certain 1099 forms if applicable
- March 15, 2023 - Taxes and associated forms are due for specific business types (partnerships, multi-member LLCs, and S-Corporations)
- April 18, 2023 - Taxes and associated forms are due for C-Corporations
Get All Necessary Documents in Order
Management company tax documentation can be complicated because your business works with many other businesses. Keeping track of all of those files is, fortunately, less of a hassle in this digital age we’re in, but still not an easy task.
You’ll likely need to go through multiple technology platforms to get the paperwork the IRS requires and find a convenient way to allocate it all in one place. While time-consuming, it isn’t impossible, and hopefully, digital copies mean fewer chances of misplaced receipts or coffee-stained invoices.
A good approach to this hurdle is to start by segmenting the types of documents and paperwork you’ll need to get together to file correctly. Here are a few to add to your list, but remember to check with an accountant for any forms we may have missed:
Your Business Documents
- Last year's tax return (if applicable)
- Receipts for goods purchased for the business (such as office supplies)
- Employee W-2s
- Relevant 1099s
Vendor Documents
The list of documents you need to prepare for vendors can get lengthy depending on the kind of vendors you utilize and how much you’ve paid them. This list can include, but is not limited to:
- W9s
- I9s
- 1099-NECs
- 1099-MISCs
Overwhelmed? Let Your VE Do It All Instead
What this whole list really amounts to is a lot of paperwork. Paperwork to file, paperwork to send out, paperwork to take in – it’s a lot. And it’s something your HireSmart Virtual Employee can easily handle on your behalf.
Now to be clear, a traditional Virtual Assistant shouldn’t be used to replace an accountant. This is important stuff, and the actual filing and final accuracy checks should all be done in-house by trained staff or an accountant. But having your Virtual Employee (VE) aggregate all of your documents, set your schedules, assist with tedious tasks, and essentially manage your time can make your 2022 Tax Season run much more smoothly.
Tackle Tax Season with a HireSmart Virtual Employee
When you’re ready to take care of your business tax return, a HireSmart Virtual Employee is just a click away. Contact us today for your free 30-minute consultation to see if a VE is the right choice for you.