This post is for informational purposes only. Denklyem Co-Op is not an accounting professional service. Consult with a certified financial advisor before you rely on this information.
It’s not too early to plan ahead for next year’s business taxes. While this year’s process is fresh in your mind, make a plan to create more efficient systems for next year’s taxes. What would make filing simpler for you? Don’t wait until March of next year. Set aside the time to implement changes today.
Create specific habits for tracking your expenses. Set up online folders for digital receipts and snap pictures of your paper receipts. Make it mobile with a cloud folder that you can access from anywhere. There are also many online programs available for bookkeeping. Many offer an app or easy way to upload receipts and invoices all in one place. Automate recurring expenses and be mindful of separating personal from business expenses to simplify documentation.
Consult with a certified public accountant. Many CPAs offer a free consultation. These meetings can be very informal, and you’ll get a good idea if hiring an accountant is right for you. This is a good opportunity to ask questions about business taxes that you might not have been able to ask. If you feel like an accountant is a good fit, you can budget for their services, so that the cost is expected and not overwhelming to your business.
Know Your Deductions
You get taxed on what you don’t use for your business. There might be hidden costs to running your business that aren’t being captured on your books. Grab a piece of paper and brain dump every online tool, office supply, device, and course that you found yourself paying for to run your business. Do your research to understand what is deductible for the type of work that you do. Something on that list might surprise you!