As a small business owner taxes are not just something that you have to worry about during tax season, they are something that you need to be aware of throughout the year. As a small business owner, there are easy and simple steps that you can follow year-round that will ensure that tax season is easier on you.
1. Have Dedicated Business Accounts
The first thing that you need to do is make sure that you have set-up dedicated business accounts. That means that you only use those accounts for the purpose of business and do not use those accounts for personal needs at all.
Keeping your personal and business expenses separate will make it easier for you to monitor your cash flow, your purchases, and your expenses. If you don't already have business accounts set-up, start setting them up today.
2. Create a System for Storing Records
Second, you need to create a system for storing records. For example, perhaps you carry a specific wallet or pouch with you that you put all receipt in when you go out shopping. Then, you scan all receipts into the computer or use a picture-taking receipt app to scan the receipts before putting them into a filing system.
For online orders, you'll want a system of keeping track of those records as well. Perhaps you have a file in your email or on your computer where you save all email receipts and take screenshots of anything that you purchase online or any online payments that you receive.
The key is to make sure that you have some sort of system in place that you can check on at least once a month to make sure that you are keeping accurate records of expenses and income.
3. Invest in Training
As a small business, don't feel like you have to skimp on training. You can write off any training that you take or that you provide your employees with as a business expense. For example, if you need to take a certification course, you could write that off as a business expense. Or if you need to provide all your employees with CPR training or specific computer training, that could be written off as well.
Don't be afraid to invest in training for you and your staff; just make sure that you keep track of that training.
As a small business owner, there are steps that you can take throughout the year that will make tax season easier. Make sure that you set up dedicated accounts for your business, create a system for storing your records, and make sure that you invest in training for yourself and your employees.
For more information, contact an accountant like Jeffrey Beebe CPA.
Share4 May 2018
When I started thinking about my life, I realized that I was spending a lot more money than I should be every month on little extras. I wanted to streamline things, so I decided to start focusing on getting my finances in order. I started looking around my house, and I was pleased to discover that there were more than a few things I could sell for a little extra cash. I put them online, and I was amazed to see how quickly they sold. After selling some things, I was able to get my finances in order, which was a huge relief. This blog is all about getting your finances in order.