Planning for the Tax Man

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Are you ready for tax time? 

Do you have a list of vendors that will need a 1099 sent to them in January? 

Have you made your appointment with your CPA to discuss tax planning? 

If not, now is a good time to reach out to them to get your meeting scheduled. I recently spoke to a tax professional who said that business owners started contacting him in early November which was very unusual. So demand is high and now is a good time to send an email or make a call to get your appointment booked. I read an article from NASDAQ.com that mentioned there will be new tax concerns for business owners that use third party payment apps like Venmo, Zelle, Cash App to name a few to accept payments in their business.

Check out the article here and discuss it with your CPA to determine what implications it could have for you in 2022. 

Do you need help finding a tax professional? Check out this link to Ramsey Solutions to find a tax professional in your area.

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How To Choose The Right Tax Professional For Your Business Needs

You are working so hard in your business to provide services to your clients that make them feel better. One day you take a break to work on your business. You are looking at your finances and begin to cringe because you know that your books are not up to date and the tax deadline to file your taxes has come and gone. So you ignore it and go back to doing what you love which is providing the best health and wellness services to your clients. You know you need to connect with a tax professional but the thought of it makes you feel anxious and overwhelmed. You also hate accounting and anything to do with the word taxes.

Does this sound like you?

If it does then you are not alone. According to a survey done on small business owners, “60% of small business owners feel they aren’t knowledgeable about accounting or finance, and 52% of small businesses owners feel they pay too much in taxes.”

So How Do You Choose The Right Tax Professional For Your Business Needs

There are a myriad of ways you can gain access to a tax professional such as getting referrals from friends and fellow entrepreneurs. My favorite tool to use for finding tax professionals and other types of professionals that I might need is to use Dave Ramsey’s ELP program. According to his site, “Endorsed Local Providers (ELP) is a nationwide service that helps you find local experts you can trust. The certified professionals that are recommended are in excellent standing in their industry and provide top-notch customer service.”

So there you have it!

I hope you find the right professional for your business and your personality. They should make you feel enlightened and welcomed. Let me know how it goes and happy hunting!

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Are You Ready To File Your Taxes?

The new year is in full swing and with the chance of a fresh beginning means getting rid of some old things like:  paying taxes.

I know it isn't what you want to hear but it can be relatively painless if you get your ducks in order.

Check out this previous post I wrote about doing just that.

Also, check out the show notes from a recent podcast on Entrepreneur on Fire.  CPA Josh Baurele discussed the implications of the new tax laws and how it could affect small business entrepreneurs.

Don't procrastinate.

Start the new year off strong and get your books in shape. 

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It's Tax Time - Are You Prepared?

As the year winds down and we all start to get into the holiday season there is one thing to start thinking about as a business owner: TAXES

I know I just ruined your breakfast this morning but it is something we cannot ignore. Here are 3 quick tips to help you as you prepare for this all-important task:

1. Make sure you have updated contact information and W-9's for all vendors who you have paid $600 or more to this year. If they are a corporation then they will not need a 1099 to be issued to them but if they are a sole-proprietor or LLC then you will need to issue them a 1099. If your not sure then get a W-9 from any vendor who you have paid more than $600 to this year. It's better to be safe than sorry.

2. Start gathering all your business related receipts you used for expenses this year and capture them on an Excel spreadsheet for easy retrieval for your tax preparer. For next year think about using Expensify to manage all of your expense recordkeeping.

3. Make sure your bookkeeping is up to date and is working for you. Do you use a specific accounting software or are you only using Excel spreadsheets? If it is the later it may be time to review if that system is still working for your business.

If you need more specific information related to tax planning and how to work with the IRS should you find yourself owing them check out Josh Bauerle's site CPA On Fire to learn some cool tips and tricks.

It is the season to be jolly but you won't have much to be happy about if you have the tax monster nipping at your toes. Be proactive and check out the tips above. Do you have a good system for keeping track of your tax-related information? Or do you just hate the word taxes? Share with us in the comments below.

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