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5 Ways to be Prepared For Tax Season
“In this world, nothing can be certain except Death and Taxes.” Benjamin Franklin.
That April 15th deadline is just over a month away and panic and anxiety about taxes and payments is looming. Let’s be honest, no one likes paying their taxes and as a small business owner it is even harder just signing away money that so much hard work has gone into making. But taxes are a necessary “evil” and something every small business owner must address
At first, we at Done By 5, were going to dive in with tips and tricks with quickbooks for taxes and spend several weeks discussing the nitty gritty of bookkeeping, but frankly an expert is much better at tackling those issues. Instead we wanted to be a little lighter and give 5 tips on how you can prepare you and your small business for tax season. And know this is true for everyone, no matter how big or small that check is that you write, it hurts the same, so you are not alone.
5 Ways to be Prepare Your Small Business for Tax Season
Don’t Procrastinate- As much as anyone hates the monotony of bookkeeping and dread of doing their taxes, DO NOT WAIT UNTIL THE LAST MINUTE! First, try to keep up with your bookkeeping at the very least monthly but ideally weekly. This ensures that all financial transactions are fresh in your mind, receipts can be filed and any special circumstance can be addressed and noted. This is key to making tax season significantly less stressful.
Use Quickbook Self-Employed- Quickbooks or other bookkeeping software should be at the core of your small business. This software will help make keeping up with your numbers easier. The beauty with quickbooks is, all those necessary tax numbers are just a push of a button away (Molly calls it tindr for your expenses).
Hire a Bookkeeper and/or CPA- If at all possible, instead of trying to manage your books yourself, hire a bookkeeper or CPA. A seasoned bookkeeper or CPA will help you manage your finances throughout the year. If your books are in order then your stress is far less and with professional help you are not trying to get your numbers in order and manage your small business at the same time.
Shed Some Tears - Yes you read that correctly. It is okay to cry as you are writing that check to Uncle Sam or digging through receipts. No one will think any differently of you. It hurts but also think of it this way, the more you have to pay in taxes the more of a success you and your business are.
Pour a Drink (or 2 or 3)- After your taxes are done and that check is in the mail, reward yourself with a glass of wine or a cocktail. Toast yourself and the success of your business and then have a drink for the pain of signing that money away.
In short, the key to success for taxes is to be vigilant about bookkeeping by either keeping up with it yourself or having a bookkeeper as part of your small business team. By staying on top of it you don't risk losing receipts for any of the crucial tax write-offs and it allows you to address any of those not so common occurrences in a timely manner.
What are your keys to success when preparing for tax season? Do you have any words of wisdom?
Need help with bookkeeping or just better ways to keep you and your business organized? Set up a free 20 minute consultation with Michelle to see how we can help.