As Benjamin Franklin said; "In this world nothing can be said to be certain, except death and taxes.” It’s that time of year again for many. Tax season can be a big stressor for many business owners. A good way to reduce this stress is by being prepared. Below are three tips that may help you organize your business’s finances for tax season.
- Know what you are allowed to deduct. Does your business use mail services? Traveled to business conferences? Depending on the type of business, you may be able to deduct different types of business expenses from your taxes.
You can learn more about deductions on the IRS’s website.
- Use bookkeeping software and/or services. There are several bookkeeping software services that can make keeping track of your business’s finances much simpler. Instead of creating time intensive spreadsheets, services like Quickbooks and GoDaddy Bookkeeping automate the organization of your expenses.
- Continually organize your finances. How many of you are guilty of putting your receipts in a haphazard pile of some sort? Don’t fall into this trap! Get into the habit of filing receipts as soon as you get them. An even better option would be to get into the habit of scanning your receipts as soon as you get them, and using organization software to categorize each expense as you make it. And of course, there are apps for that! You can use your smart-phone to take pictures of your receipts and use an app like Expensify to automatically organize them.
Take a look at eBay’s article "Three Things That Can Make Tax Time Way Easier." They list several tips that can help make your tax season easier for you and your tax professional. Remember, the deadline to file for Corporations and S-Corporations is March 16. If it’s unlikely you’ll be able to file by that date, make sure you file an extension!