7 Ways to prepare for tax time all year long

Tax time is rough for anyone, but it’s particularly tough for small business owners. While trying to keep up with inventory, shipping, paying bills, and all your other daily tasks, you still have to figure out how to deal with constant tax woes. And ignoring it just makes it worse!

Need some help? Try these tips on for size.

1. Get a Filing System Going

Nothing hurts your tax time more than not having a filing system in place. If you get started on your quarterly estimated taxes but can’t find anything you need, your stress level is automatically doubled! Gather all your materials and put them in respective folders (receipts, invoices, deductions, etc.) and maintain the system year round.

2. Streamline Finances

How much did you bring in over the tax period? How much did you pay out to that vendor or to the computer store in that same period? Figuring all this out can be a pain…unless you streamline your finances through some sort of bookkeeping service that tracks it all for you so you just plug in the numbers and go.

3. Digitize Paperwork

Instead of keeping a paper filing system, consider digitizing everything. This can make keeping track of everything, especially receipts, remarkably easier. One big reason is you can label everything which makes them searchable in your database. If you need all your gas receipts, for example, it just takes a second.

4. Go Over Deductions

Small business owners miss all sorts of deductions. Did you know any trip counts as a travel deduction – even if it’s to the post office and back? Over time these add up more than you might think. Try to go over the taxable period day by day and figure out every event that could lead to a deduction or credit. Read more about automobile expense deductions here.

Read the next 3 steps here..

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