Ugh, the dreaded conversation about filing your taxes as a small business. The topic alone is enough to make some small business owner’s stomachs turn. What if I told you there was a way to get organized, become prepared for the dreaded Tax Day deadline, and maybe loath tax season a little bit less. I know you’re probably rolling your eyes but bare with me.
Let’s start off with the bad news. There’s no cookie cutter comprehensive checklist for small business owners. We wish there was so you could make a list, check it twice, and then hand it over to your accountant. Unfortunately, that’s not the case. There is good news, however. You can be proactive and reach out to your accountant and discuss the tailored needs your business needs to keep record of. They will also inform you of what deductions are applicable to your business and the appropriate tax payment reductions.
Having a bookkeeping software is crucial! It will not only allow for you to remain organized, but it will allow you to pull reports with reflecting information regarding best-selling items, the items that are not selling as well, and a breakdown of your overhead and expenses. Staying organized will allow for a smoother appointment with your accountant (or business coach hint hint) and make filing your taxes a breeze. Okay, maybe a tropical storm breeze but it beats a category five hurricane.
As we head into a recession, being able to know where you are financially and being able to pull your reports to make quick decisions is what separates those who fail and those who thrive in a recession. Speaking of another natural disaster, do you remember the earthquake the Covid-19 pandemic caused with PPP loans? Many small businesses struggled getting their applications approved because they didn’t have proper bookkeeping that showed the required percentage of loss to be granted the PPP loan. You cannot funnel cash payments under your mattress and expect the best-case scenario. Build your business with honesty and integrity and the foundation can withstand any storm that should prosper against it.
For more information regarding what other storms you can prepare for this tax season, please visit our YouTube Channel Practical BizZ Podcast https://youtu.be/bELEzQSqhNo