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While inventory is being completed, the next step for a printer’s tax preparations is to tie up all loose ends in accounts receivable and accounts payable. That means following up with past-due clients and making sure bill payments are up-to-date.

Information requirements vary among printers, but when everything is in order, most send their accountants a profit and loss statement, a balance sheet, loan and interest statements and any other necessary financial data. Provided the accountant does not request additional information, the final step for printers to file their taxes is to sign off on the forms and mail them or submit them electronically.

Financial Maintenance
The key to painless tax preparation is keeping plenty of accurate records. In addition to streamlining tax filing, maintaining good records gives printers the ability to more effectively manage their businesses.

“I found that printers that keep the best records are the ones that can tell you exactly where they’re making money or not making money because they’ll have little, departmental profit/loss statements,” Thompson said.

John Long, owner of Allegra Print & Imaging in Indianapolis, reviews an in-house progress report and profit and loss statement from his accountant every month. Though Long said 2009 was the toughest year he’s had in 23 years of business, he attributed the small profit his company made to the scrutiny he puts his financials through. “I’ve heard of many owners at the end of the year say, ‘Oh, I didn’t withhold enough money, or I got penalties for this and that,’” he said. “And just by having that ongoing dialogue with your accountant and an understanding of your financials, you’re not going to end up with surprises at the end of the year.”

Tax Tips
One good, finance-related tip Long gave was for printers to join peer groups. The feedback and support shared in these meetings can be a notable boost to a printer’s ability to manage the business from a fiscally sound perspective. Dumich said he is often asked, “What can I deduct?” The answer to that question is general, not specific. A deduction is anything that is a reasonable, ordinary and necessary expense to run your business.

Christopher Brinckerhoff is a freelance reporter based in the Chicago area. He has written about education, community development, business and technology. Prior to his journalism career, Brinckerhoff was an account manager at a quick printer.