Easy Tax Season Tips for Small Business Owners Just Like You!

Tax season is here, and for small business owners, it can be one of the most stressful times of the year. With deadlines approaching and paperwork piling up, it's important to stay organized and make the process as smooth as possible. Here are some easy, helpful tips to help you navigate tax season with confidence.

1. Keep Your Financial Records Organized

One of the biggest challenges small business owners face during tax season is scrambling to gather receipts, invoices, and bank statements. Avoid last-minute stress by maintaining an organized system throughout the year. Use bookkeeping software to track expenses and income, and ensure all transactions are categorized correctly.

2. Separate Business and Personal Finances

If you haven’t already, open a separate business bank account and credit card. Mixing personal and business expenses can create a bookkeeping nightmare and make tax filing more complicated. Keeping them separate simplifies tax reporting and helps maximize deductions.

3. Know Your Deductions

Tax deductions can significantly reduce your taxable income, so be sure to take advantage of those applicable to your business. Some common deductions include:

• Home office expenses (if you work from home)

• Business-related travel and meals

• Equipment and software purchases

• Marketing and advertising costs

• Employee wages and benefits

• Business insurance premiums Consult with a tax professional to ensure you’re maximizing your deductions legally.

4. Track Your Mileage

If you use your vehicle for business purposes, mileage tracking can save you money. The IRS allows a standard mileage deduction, which can add up over the year. Use an app or a mileage log to keep track of your business-related trips.

5. Review Your Estimated Tax Payments

Many small business owners pay estimated taxes quarterly. If your business income has changed significantly from the previous year, review your estimated payments to ensure you're not overpaying or underpaying, which could result in penalties.

6. Gather All Necessary Tax Forms

Make sure you have all required tax documents ready. This may include:

• 1099-NEC/MISC forms for independent contractors

• W-2s for employees

• Profit and loss statements

• Balance sheets

• Receipts for deductible expenses

• Bank and credit card statements Having these documents readily available will make filing much easier.

7. Plan for Retirement Contributions

If you have a SEP IRA, Solo 401(k), or another retirement plan, making contributions before the deadline can lower your taxable income. Check with your tax advisor to determine how much you can contribute.

8. Be Mindful of Deadlines

Missing tax deadlines can result in penalties and unnecessary stress. Key tax dates for 2025 include:

• March 15 – Deadline for S-corporations and partnerships to file (or request an extension)

• April 15 – Deadline for sole proprietors, single-member LLCs, and C-corporations to file taxes

• April 15 – First estimated tax payment due for 2025 Mark these dates on your calendar and set reminders to avoid last-minute scrambling.

9. Consider Hiring a Professional

Even if you handle your own bookkeeping, working with a tax professional can help you uncover deductions you may have missed and ensure you’re filing correctly. They can also help with tax planning strategies to minimize liabilities in the future.

10. Start Preparing for Next Year Now

The best way to make next tax season easier is to start preparing now. Keep records updated, stay on top of expenses, and review your tax strategy regularly. Implementing good financial habits throughout the year will make tax time much smoother.

By following these simple tips, you can reduce tax season stress and ensure your business remains in good financial standing. Need help organizing your books or preparing for tax time? Contact us today!

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Planning for the Tax Man

Photo by Karolina Grabowska from Pexels

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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