With tax day in the rearview mirror, next year’s taxes are probably the last thing you want to think about. But, if you make a few adjustments now you can make next tax season even more of a breeze.
Make sure you’re tracking and categorizing your expenses
It’s easy to let expense records pile up and it can become a daunting task to have to record and categorize all of them. That’s why you often hear about the headache of sorting through mountains of faded receipts come tax time.
If you start tracking your expenses throughout the year though you can eliminate that headache next year – all the sorting and categorizing will already be done. Plus you can make it even simpler by connecting your bank account and having the expenses automatically imported. For more information about how to get started with expenses in FreshBooks, check out this article.
Make sure you’re tracking all your income
It is really easy to report on all of the income you invoiced through FreshBooks, but it can be tough at tax time if you have income outside of FreshBooks to account for. Save yourself the headache of hunting down the details of those payments later by tracking them as they come in. Read on to find out the best tips and tricks to keep it all organized in FreshBooks.
Work with an accountant
Many small business owners don’t work with an accountant all that frequently, but working with one, even only a few times a year, can make a major difference to your business’ financial health. If you check in with an accountant a couple of times a year they can make sure all of your records are in good shape and give you tips on saving money come tax time. Plus, once the tax season shows up your accounting bill may be less because you have already done the preparation work.
Check out the FreshMap if you’re looking for an accountant in your area.
Starting earlier is always easier said than done, but a lot of the pressure from tax time comes from the fact that there is an immovable date you need to hit. It also certainly doesn’t help that your regular business activities don’t take a break to allow you to work on your taxes. So to help take the stress of next year aim to start earlier than you did this year, even if it is only by a week. It’s amazing how much easier everything seems when you don’t have a deadline looming over you.
Personal pain points
While there are lots of general tips, sometimes the best improvements come from more personal things. Think back to this year’s tax time – what were the biggest rough spots for you? Maybe you filed by hand and want to find a way to file electronically next year. Maybe you didn’t plan out a schedule and felt rushed to get everything done. Maybe you didn’t properly reward yourself for all the hard work you put into prepping your taxes.
Choose one of the things that gave you a headache this year and aim to make it better next year. Even if it is small, at a stressful time like tax season a small change can make a big difference.