Yep, it’s time to talk about taxes!
Not everyone’s favorite topic, Money Bitches, but one that you ABSOLUTELY need to be informed about.
As if personal taxes weren’t confusing enough, business taxes have additional layers of complexity you need to sort through.
You can do this though – and we’ve got you covered!
There are four steps you need to take to effectively tackle your business taxes: keep yourself organized, seek professional assistance, using helpful software, and save, save, save. If you follow these tips, you won’t be unpleasantly surprised come tax time!
Keep all your business paperwork and tax documents well-organized
One of the most important things you can do to make tax season less stressful is to keep your business paperwork and tax documents well-organized. This will make it much easier for your accountant to prepare your taxes, and it will also help you keep track of your expenses throughout the year. Make sure to keep track of all your receipts, invoices, and other important documents.
There are a few different ways to keep your business paperwork and tax documents organized. One way is to create a filing system for your documents. You can create folders for different types of documents, or you can organize them by year. Another option is to use a document management system, which will allow you to electronically organize and store your documents. If you choose this option, make sure to back up your files regularly. Finally, you can also use an accountant or tax preparer to help you stay organized and file your taxes correctly.
Meet with an accountant to discuss your tax situation
Discussing your business tax situation with an accountant will help ensure that you are taking all of the appropriate deductions and credits. An accountant can also help you stay up-to-date on any changes to the tax code that could impact your business.
Accountants can help you understand the tax code, file your taxes correctly, and take advantage of any deductions or credits that you qualify for. They can also help you stay organized and plan for future tax payments. If you have any questions about your business taxes, it’s a good idea to consult with an accountant.
Use accounting software to keep track of your expenses and profits
If you’re doing your bookkeeping yourself, using accounting software can be a great way to keep track of your business expenses and profits. This will make it much easier for your accountant to prepare your taxes, and it will also help you keep track of your expenses throughout the year.
There are many different bookkeeping programs available, so do your research and find one that is right for you. The program you choose should be easy to use and fit your needs. It’s also a good idea to consult with your accountant to see what system they prefer.
Set aside money to pay your taxes
One of the best ways to prepare for tax season is to set aside money to pay your taxes. This will help ensure that you have enough money to cover your taxes, and it will also help you stay organized throughout the year. Make sure to budget for your taxes, and try to save as much money as possible.
There is no one-size-fits-all answer to how you should save, as the amount you need to set aside will vary depending on your business and tax situation. However, a good rule of thumb is to budget for at least 25-30% of your annual income. This will ensure that you have enough money to cover your taxes, and it will also help you stay organized throughout the year.
Need help handling the ins-and-outs of your business?
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