With tax season right here—today is the last day to file your 2017 taxes—there’s no better time to start thinking about how you can make this day easier for yourself in the years to come. Some of us dread the thought of preparing our taxes, and for others, it’s a piece of cake.
Read these tips to learn what you can do to make your life a lot easier at tax time.
Keep track of all your expenses throughout the year and record them on a spreadsheet—or better yet, think about investing in some tax software. Staying organized is the easiest and cheapest way of saving yourself the headache of trying to sort through receipts later.
Another tax tip: Don’t comingle your personal and business bank account. Muddling up the two could mean a mess at tax time—keep your personal bank account and your business bank account separate.
There is nothing worse than April rolling around, and you’re overwhelmed and unprepared to file your taxes. You can find dependable accountants and tax advisors almost anywhere. Make sure to give them a few weeks to prepare your taxes; they’ll likely be swamped as the tax deadline gets closer.
Small businesses can save on their taxes by using deductions—and there are dozens of them. Many of your business-related expenses—education, supplies, and so forth—can be deducted. How about those monthly utility bills? Getting your scissors sharpened? That thorough salon cleaning you had done? It’s all deductible! Just make sure to visit IRS.gov to see a full list of deductions.
Be prepared to pay
The second worst thing that can happen to a small business owner is being hit with a massive tax bill. The worst thing? Being unprepared. Small business owners must pay a self-employment tax, which can add up if your business did well that year. Talk to an accountant or tax advisor to determine a plan to set away money every month towards your yearly tax goals.
You knew opening a business would be hard work, so roll up your sleeves and get to crunching those numbers! The more organized you are, the easier the whole process becomes. Try not to get overwhelmed and give yourself plenty of time to prepare.
Do you have any tax tips that you use year after year? Tell us in the comments below!