379: Small Business Tax Tips For Stress Free Filing Whether You Are Starting A Business Or Side Hustle, A Solopreneur, Entrepreneur, Mompreneur, Freelancer, Accountant, Bookkeeper, Virtual Assistant
- 7 hours ago
- 9 min read
379: Small Business Tax Tips For Stress Free Filing Whether You Are Starting A Business Or Side Hustle, A Solopreneur, Entrepreneur, Mompreneur, Freelancer, Accountant, Bookkeeper, Virtual Assistant, Business Owner, Or Self-Employed
As a business owner, it is important to stay ahead of the curve when it comes to tax preparation. You want to make sure that you are ready for any unexpected decrease in expenses or increases in income so that you don't have any surprises when it comes time to pay your taxes. The rules and regulations change every year, and if you are not prepared, you could end up paying more taxes than necessary. In today's podcast episode, I'm discussing a few tips for getting ready for your tax preparation. Another thing to consider is whether or not you have been taking advantage of all available deductions and credits regardless of whether you are starting a business or side hustle, you’re a self-employed individual, a solopreneur, entrepreneur, mompreneur, freelancer, small business owner, a remote, virtual, online, or in-house bookkeeper or accountant, a virtual assistant or VA, or other professional. There are many deductions and credits available to business owners, and they can vary. Listen in so that you can follow these tips to ensure that your business is in compliance with the latest tax laws and that you are taking advantage of all the deductions available to you. It doesn't matter if you are using a computerized software system like QuickBooks, Xero, Wave, or FreshBooks for your business finances or if you are doing your bookkeeping manually with an Excel spreadsheet or even a Google document, this episode will be helpful for you...
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Show Notes:
As a business owner, it is important to stay ahead of the curve when it comes to tax preparation. You want to make sure that you are ready for any unexpected decrease in expenses or increases in income so that you don't have any surprises when it comes time to pay your taxes. The rules and regulations change every year, and if you are not prepared, you could end up paying more taxes than necessary. In today's podcast episode, I'm discussing a few tips for getting ready for your tax preparation. Another thing to consider is whether or not you have been taking advantage of all available deductions and credits regardless of whether you are starting a business or side hustle, you’re a self-employed individual, a solopreneur, entrepreneur, mompreneur, freelancer, small business owner, a remote, virtual, online, or in-house bookkeeper or accountant, a virtual assistant or VA, or other professional. There are many deductions and credits available to business owners, and they can vary. Listen in so that you can follow these tips to ensure that your business is in compliance with the latest tax laws and that you are taking advantage of all the deductions available to you. It doesn't matter if you are using a computerized software system like QuickBooks, Xero, Wave, or FreshBooks for your business finances or if you are doing your bookkeeping manually with an Excel spreadsheet or even a Google document, this episode will be helpful for you...
Welcome Back…Tax time can be stressful. However, it doesn't have to be if you are prepared. As a business owner, there are a few things you can do to make the process easier. The tips I cover today are for the typical small business owner to help you overcome the overwhelm when it comes to getting information ready to file your business tax return.
The first step in being prepared for your tax preparation is to gather all your financial information. This includes all of your business income and expenses for the year. Most tax preparers will ask you to have a Balance Sheet and a Profit and Loss Report prepared for them so that they know you have all of your transactions accounted for. If you are using a computerized bookkeeping software solution, you can usually get these reports with one click of a button if you have all of your bookkeeping up to date. If you are using a spreadsheet like Excel or Google Sheets, you can set up your spreadsheet to get this information as well. If you don't have these financial reports and you'd like your tax preparer to generate them for you, make sure you have your documentation for all the money coming in and going out of your business so they are able to generate these reports for you. Information such as invoices, receipts, and bank statements will help your tax preparer with all the information they need. If you are unsure about which expenses are deductible, make sure you consult with your tax professional to ensure you are taking advantage of all the tax deductions available to you.
If you are doing your own bookkeeping and you are preparing your Balance Sheet and Profit and Loss Report, you will want to make sure you record every transaction you’ve made throughout the year, reconcile each of your accounts, and review your information prior to sending it to your tax preparer. You can compare your current year to your last year to see if there are any large variances, and if so, dig a little deeper to make sure you can justify the difference. For example, if you know that your insurance expenses went up considerably more than the prior year, are you able to justify this with an increase in premiums? If not, you may need to dig a little deeper to make sure that you don't have another expense accidentally recorded in this account. This is also a great time to review your expenses and see how they are in alignment with the prior year. If you find that you are spending more money than usual on certain business expenses, see if there are any ways you can reduce those costs.
If you’re an accountant or high-stress professional, you want to start enjoying your life more, both at work and at home. You’ve likely built a successful career, but at what cost? The problem is you’re so buried in deadlines and to-do lists, there’s no time or energy left for the things that really matter. You’re great at managing clients, deadlines, and numbers, but your own stress, time, and well-being, well, they always seem to come last. The constant pressure leads to burnout, guilt, and feeling like no matter how much you do, it’s never enough. I see this all the time. As a CPA with over 20 years of experience and a Certified Coach, I’ve helped high-achieving professionals like you go from stress and burnout to a more integrated and balanced lifestyle using The RE*INVENTION™ Process. This process helps you reduce stress, reclaim your time, and finally build a healthier, happier, more balanced lifestyle without sacrificing your success. The truth is, stress doesn’t go away on its own, and eventually, the cost isn’t just exhaustion; it’s your health, your relationships, and your love for the work you once enjoyed. If you’re ready to build a life you don’t need a vacation from, it’s easy to get started. First, schedule your Complimentary Stress Audit & Clarity Session, where in just one session, I’ll help you pinpoint what’s really draining your time and energy, create a personalized action plan to help you simplify your life, reclaim your time, and increase your productivity so that you start living with more energy, focus, and freedom. You don’t have to keep doing this alone. I can help you customize a plan to stop the overwhelm and start enjoying your life again. Go to www.FinancialAdventure.com, click on the Work With Me button, and book your free session today. Let this be the moment you stop just surviving and start living with more control and finally enjoy a more integrated and balanced lifestyle again. In the meantime, check out all the other resources and solutions on my website that you can immediately apply to your life so you can stop being stressed out and feeling like you're never doing enough, and instead breathe a sigh of relief at the end of the day, knowing you've accomplished enough and can enjoy your life more.
Once you have reviewed your income and expenses, it is time to calculate your taxable income. Your taxable income is generally your net income on your Profit and Loss Statement, although there may be some adjustments. This number will be used when determining how much taxable income will be coming from your business. If you are a sole proprietor, your taxable income will be included on your individual tax return. If you have a partnership or S-Corporation, you’ll need to file a separate tax return, and the taxable income from the business will be passed through to your personal tax return and taxed at your individual rate.
Now that you have calculated your taxable income, it is time to report it on your tax return. This includes all of your business income and deductions for the year. I highly recommend when you have a business that you have a professional prepare your tax return, especially if you have a partnership or a corporation or S-Corporation. These entities require a separate return, and these returns can get complicated. The most important thing is to make sure that everything is accurate and filed on time, which is why you want to have a professional working on this for you. Schedule an appointment with your tax preparer early, or at least make sure that you touch base with your tax preparer early in the tax season to see if there are any additional items they would like to receive from you to prepare your tax return. If you are not able to meet with your tax preparer in person, that shouldn’t be a problem. Most tax preparers are able to work with you remotely, or you can simply drop off or upload your tax documents in their secure portal.
By following these tips, you can ensure that your business is not only prepared with everything needed to file your business return, but you are also in compliance with the latest tax laws and that you are taking advantage of all the deductions available to you. Tax preparation can seem daunting, but by breaking it down into simple steps, it can make this task a little more trouble-free. I hope these tips have helped clear up any questions you had about filing your taxes. If you still feel like you are struggling to have your business prepared for filing your tax return, let’s schedule a time to chat. I am opening up a few dates in my calendar to help you, as one of my podcast listeners, be prepared for this tax season. If you haven’t started your bookkeeping for last year yet, what are you waiting for? The tax deadline will be here before you know it. I am able to offer remote sessions where you and I can work together on your actual data to get caught up or to set up your own individual strategy plan so that you know exactly what you need to do to have your bookkeeping up to date. We can start from scratch, or if you’ve already started recording your transactions but have that odd feeling that something just isn’t quite right, we’ll walk through it together.
And, you know I’m going to ask…what’s at least one thing you will take away from this episode that will help your business succeed and grow your bottom line? If you want accountability or support, visit www.FinancialAdventure.com. You’ll find links to join our private Facebook community, connect with me on LinkedIn, and discover more free resources to help you reduce stress, boost productivity, and build a business and life you truly enjoy. I’ll see you there.
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