Start today to get your accounting records organized for tax preparation. There is an excellent article in Business Week that explains why it is crucial to start sooner than later.
Even if your business is tiny and not yet profitable, the time is now. Waiting until is almost March 15 (quarterly tax deadline) or April 15 (personal income tax deadline) to get ready for tax filing is too late.
If you just started your business in 2007, you may not have yet set up an accounting system. Do that first, whether it is using Quickbooks, Peachtree or Less Accounting.
Why is it important? You can play around with Excel all day long, but only an accounting system will give you a good sense of the company’s cash flow, accounts receivables and profit or losses.
Get organized now, or hire someone else to do it. A bookkeeper can help with entering in expenses into the accounting system and classify into the right expense categories. April 15 is only 99 days away, so the later you start, the more it will cost you in the end.