3 Things to Know if You Start a Consultant Business & Aren't Sure How to File Taxes

If you started working as a sales consultant for the first time, on top of your regular occupation, and you have no idea how to report your earnings, it's time to consider getting a tax preparation expert to help. There are a lot of things that can come up that could cause you to get audited, and you want to make sure that you don't end up with legal problems because you didn't file your taxes properly. Here are some of the things that you want to do before meeting with the tax professional.

Calculate Expenses

Calculate all of your expenses, but determining how much money you have had to spend to get your business up and running. If you had to buy office supplies, a new computer, spend money on gas or food, all of these things are expenses that your tax preparation expert will want to know about, and you want to track down the receipts for these purchases. This may mean that you have to look back through your spending history, but it's worth the expense.

Track All Earnings

Make sure that you have a detailed report that has all of your earnings documented, including any kickbacks that you got because of the amount of items you sold in a month or year. If there were different types of bonuses that you were given because of the sales goals that you met, you want to make sure that you have them documented, since you may have to pay taxes on these items.

Make Sure You are Filing Properly

You want to make sure that you are establishing yourself and filing properly. If the tax preparer thinks that you shouldn't be a sole proprietor, or that you should be requesting a 1099 instead of a 1049, these are things that you want to know so you can pay the least amount of taxes throughout the year.

There are a lot of issues that can come up when you are trying to fill out taxes for the first time and you want to make sure that you are doing things the right way the first time, so you don't get audited or have a delay with getting back your return. Find a tax preparation company like Alexander & Associates CPA and discuss these different options so you can find out how much you have to pay in right away.