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Bookkeeping and Tax Prep Tips for Small Businesses #5

The IRS has provided information regarding using W-2 information as an approach for scamming for identity theft as the example above shows.  The scam could be something like what appears to be a company executive requesting a payroll employee to provide all employees’  W-2s.   The target of these scams have been businesses of all sizes, public schools, universities and Indian tribes.

If you, as an employer or an individual has been already victimized, the IRS asks that you email them at and provide a POC (point of contact) for their investigation.

If you receive an email that is requesting W-2s, you can forward those emails (with full headers) to and use the subject line: W2 Scam.

All tax related scams and how to work with the IRS on these issues can be found at

Update your W-4’s (for businesses and individuals)

With the passage of the “Tax Cuts and Jobs Act of 2017” personal taxes for individuals and allowable deductions changed significantly.  With that change, the IRS suggested that EVERYONE check their W-4 filings in 2018 with their employers.  And further, in 2019 some more of the tax changes take affect, so it may be to your benefit to check again.   Here is a link to the IRS W-4 calculator)

Business should encourage their employees to look at this before filing taxes for 2018 and again further on into 2019 (as there are some changes that are phased in with the new law).  Additionally, we should anticipate that additional tax law changes will be coming, so remind your employees that it is to their benefit to keep in sync with those changes!

Bookkeeping and Tax Prep Tips for Small Businesses #4

Organize your Income documents.

In a filing cabinet, make separate folders for different kinds of Income documents:

  • Work In Progress folders by Client (like Estimates, unfilled Purchase Orders, Sales Orders, etc)
  • Invoices Waiting on Payment
  • Paid Invoices by Client (sort into folders in alphabetical order)
  • Investment Income records
  • Passive Income records (like Rental Income, keep separate)

Bookkeeping and Tax Prep Tips for Small Businesses #3

Organize your receipts, bills, etc. on a daily basis, preferably by vendor and expense type. It will save you time at the end of the year when you file your taxes.

Make folders for your documents:

Vendors A

Vendors B

Vendors C…

Home office expenses

Medical and healthcare


Mortgage record  (permanent asset file)

Vehicle record  (permanent asset file)

Bookkeeping and Tax Prep Tips for Small Businesses #1

Separate your business account and personal account

Pay yourself regularly. Either with Owner’s Draw, Shareholder’s Distribution or a Paycheck.

Spend the money in your personal account ONLY for personal use.

Spend the money in your business account ONLY for business use.

If you invest money in the business, transfer money from personal account to business account.

It helps you keep track of how your business is doing as well as prepare for your tax returns and the end of the year.

Tax Time Alert

Before you file your tax return, remember to:

The Bank Statements
The Credit Card Statements
The Loan Statements
The Accounts Receivable
The Accounts Payable
The Sales Tax
The Payroll Tax
The Undeposited Funds

Leave no “Widows and Orphans” on your Books.
Contact me if you need help.
~ because Efficiency Counts!