3 Things to Do Before Next Tax Season for Your Small Business
When it comes to tax season, do you feel like you have a handle on everything you need to do? Or do you feel like you’re struggling with getting all your stuff together in order to file your taxes yourself or give your tax preparer everything they need?
I get it. As a small business owner myself, I can understand how confusing it is to know what’s a write-off and how to keep track of everything. It can be overwhelming and stressful, especially if this is all new to you - and you want to avoid as much tax liability as possible.
Here are 3 things to start doing TODAY so next year feels a little less stressful…
Create a system for tracking your income and expenses. It can be as easy as keeping a spreadsheet that you update once a week or once a month. Or, if you’re ready to make a small investment in your business, start using Quickbooks to keep track of everything.
Start separating your business finances from your personal finances. You can easily setup a new account with your bank, but by keeping these accounts separate, it will not only make it easier for you to track your income and expenses, but you’ll be able to pay yourself easier too!
Start putting money away for retirement. I highly recommend opening a SEP-IRA but you typically have to wait until tax filing season to know how much you can contribute. But a traditional IRA is another way to start putting away money for retirement on a regular basis. You don’t want to work forever, right?!
Once you start keeping a record of your income and expenses and create systems to track them, managing your finances will become much easier. Separating your business and personal finances provides transparency and makes it simpler to pay yourself while also saving for retirement. It might not be easy at first, but once you find the most effective way of tracking your finances that works for you, it will make managing your money so much less daunting.
Need help getting your finances under control for your small business? Be sure to grab your FREE Ultimate Business Accounting Checklist today to learn how to start tracking your income and expenses (and make tax time next year a lot easier for you)!