The typical mad rush of tax filers inputting data and struggling to find all the necessary details to file their taxes before the midnight deadline is finally over. Phew! We made it. While we’re all breathing a sigh of relief that tax season is wrapped and in the books, the reality is that now is actually the perfect time to start preparing for next year.
NO! You might be screaming inside your head. “I just finished! Preparing for next year is the last thing I want to do.” Perhaps. But if you were one of those last minute filers scrambling and stressing, taking the time now to make a few changes may mean you’re able to avoid all the headaches and hassle next tax season. And won’t that be worth it?
Start with QuickBooks
Start by setting up an accounting management system like QuickBooks that is both easy-to-use and specifically designed to help small businesses manage their finances. These software programs offer a complete catalog of your expenses. Having accurate data at your fingertips can minimize mistakes and reduce the time needed to prepare your taxes. That’s like money in your pocket!
Not sure how to begin with QuickBooks? We’ve got that covered, too. We tailor our write-up projects to migrate whatever your current system is (shoeboxes, file folders, random spreadsheets) and transfer everything into a QuickBooks system tailored to your specific needs.
Today’s scheduling programs can also become a valuable resource. when you use calendar apps like Google, iCal, or Outlook to track appointments, it’s easier to capture and verify information like dates, locations, and time for expenses like mileage, childcare, or medical bills.
As the year progresses, plan to periodically review your big financial picture. Lots of business and positive cash flow is a sign of success. That’s great! But that can also mean a higher tax burden, so you’ll want to watch it and act accordingly. There are a few ways to lower that tax liability. Invest in new equipment or a company car, contribute to a retirement plan, or pay outstanding bills before the December 31 cut off.
Protect Personal Income
Finally, protecting your personal income is also important. There are a variety of IRA (individual retirement account) options available, and contributions to those can help offset and lower your personal taxable income.
If this tax season left you feeling dragged through the ringer, let us help you make a few changes that will ease the process for next year.