As a poultry grower, you are responsible for both your personal and business expenses. Tracking your finances, opening a savings account and having an emergency fund are just a few things you can do to increase the health of our poultry business. As we approach the year’s end, thinking about the upcoming tax season is vital. It may seem early, but it’s never too soon to prepare you poultry farm taxes.
The steps below will help you get organized for the new year:
Schedule a Meeting With Your CPA.
First and foremost, meet with your CPA or accountant over the next three months. He/she will go over the best practices to organize your finances and help you plan for the remaining months. Remember, once the year ends, all new expenses will move to the 2018 budget.
Prepare for Your Tax Return.
To prepare your poultry farm taxes, you will need to organize the following:
- Income Statements – These are the statements you receive from the integrator.
- Interest Paid on Your Loan – Your bank will email you this.
- Expenses – This includes any costs incurred aside from your integrator statements including:
- Auto Expenses (mileage or actual expenses)
- Bank Fees
- Computer and Internet
- Legal or Professional Fees (lawyer or accountant)
- License and Permits
- Property Tax
- Utilities (Include electric, gas, water, security system, disposal fees or dumpster fees.)
If you have alternative income sources or expenses for the farm like cattle or hay, you will need to include these as well. Ask your accountant if it makes sense to file affiliate income and expenses as a separate Schedule F for the poultry operation. This will allow you to keep track of income and expense for each operation.
Often, your CPA will also ask to see your bank statements. Have these documents ready to keep the process moving. The more information you can provide your CPA, the better. The more organized you are, the less stressed you will feel when tax season rolls around.
How you track your expenses is very important. Purchase a receipt holder and keep all receipts until the end of the year.
When it comes to tax savings, paying yourself can help you save and prepare for the future. If you are not comfortable with this concept, you will soon learn that investing in yourself is as important as investing in your business.
Following these steps will enable you to plan for the upcoming tax season and have peace of mind moving into the new year. Keep up with our poultry resources by visiting liveoakbank.com/ag.