Tax season – two words that can strike some angst into the hearts of even the most seasoned business owners. But fear not; with a few savvy strategies throughout the year and preparation, you can breeze through tax season with the right accounting and tax partner.
Stay Organized
The key to reducing stress during tax season is staying organized. To streamline the tax preparation process, keep all your financial records in one place throughout the year. Consider using accounting software or apps to categorize expenses and track income. While it sounds complex to get started, owners report that recordkeeping gets easier with each year, and you’ll save yourself countless headaches when tax time rolls around.
Know Your Deductions
Did you know numerous tax deductions are available specifically for small business owners and there have been changes over the past months? Take the time to familiarize yourself with these deductions and ensure you’re taking advantage of every opportunity to lower your tax bill. From home office expenses to business travel and professional development, every deduction counts. Working with an accounting professional can ensure you keep up-to-date on the changing rules and regulations. Ask about the 2023 and potential 2024 deductions for federal and state taxes.
Plan Ahead
Are you familiar with the last-minute rush to get things done? We recommend spreading out the workload over the course of a year through regular financial checkups. By spreading out the workload, you’ll minimize stress and ensure a smoother tax season. (The same principle applies to your holiday shopping, but unfortunately, we can’t help you with the wrapping!)
Consider Hiring a Professional
If the thought of doing your taxes fills you with dread, consider hiring a qualified tax professional to help you navigate the process. A skilled accountant or tax advisor understands your situation and will ensure that both the business and personal aspects of your taxes are filed accurately. They will also ensure you maximize your deductions. While it may require an upfront investment, the peace of mind and potential tax savings are well worth it.
Take Breaks and Practice Self-care
Remember to take care of yourself during tax season. We know better than anyone that deadlines and paperwork can cause stress for business owners. As we tell our accounting and tax team members, take breaks, get plenty of rest, and engage in activities that help you relax and recharge.
Keep Your Cool This Tax Season
Implementing these strategies and approaching tax season with a more calm and confident mindset will also help you and your tax accountant. So take a deep breath—together, we’ve got this!
