I see you over there dreading tax season as a small business owner. If your Tax Season had a theme song, it might sound like John Williams’ famous ‘da, duh’ from Jaws.
If you are a small business owner who dreads tax season, more than likely, you fall into one (or more) of these three categories.
- Disorganized Diva
- Deadline Junky
- Winging “Expert”
You realize it wasn’t just one month you put off keeping your income and expenses organized but practically the entire year. Come tax season, you often find yourself wasting time playing catch up, spending hours going back to organize your numbers so you can file.
Caution: this will take hours away that you could spend on more important things in your business or time with your family.
You procrastinate because you have other things you would rather do instead of taxes. (🤫 I can’t blame you there!) However, you might quickly regret that choice if you underestimate how long it takes to get everything together to file.
Warning: Although nothing is wrong with waiting to do your taxes, please do not flirt too close to the deadline. Doing so can add unnecessary stress since you are racing against the clock to avoid penalties/fees. If you cut it too close, you might even decide it’s not worth it to gather the needed information for all your deductions. This is almost always an indicator that you are leaving money on the table and out of your pocket.
Winging It “Tax Expert”
You do not feel like you can financially afford a tax expert. OR you prefer to be frugal in this area and DIY.
Be careful: this category can cost you a lot of hard-earned money. As frugal as I am with business spending, I firmly believe in protecting what I earn.
“Sometimes being frugal looks like investing to protect your earnings.”
Investing in a professional to ensure your business gets all the tax breaks possible is money well spent. It can often save a small business more in taxes than the cost of the professional service. Plus, there is less stress as you enjoy peace of mind knowing that your taxes are in good hands.
Do any of these sound like you can relate? If so you may be wondering…
How do I make Tax Season less stressful?
- Be Proactive and Get Organized: (HAHA! Yes, Really! Get Organized and STAY organized)
- Spending 10-15 minutes weekly to stay on top of income and expenses throughout the year is something your future self will always thank you for. This is way more time-efficient than combining 365 days worth of book-balancing into a few days.
- Pro Tip: Use software that keeps your business income, expenses & miles traveled all in one place. I use the Simple Start Plan with Quickbooks, and I love it! (Not to brag, but if you want to score 30% off for six months- utilize this exclusive link to do just that!)
- Effectively Schedule Time to complete and file your taxes.
- By scheduling time to work on taxes, you eliminate the mental stress of having taxes in the back of your mind every time you turn around. Carve out time in your schedule so you know exactly when you will check off items on your tax to-do list.
- Pro Tip: Utilize a tax checklist to schedule what needs to be completed. You can find free tax preparation checklists on major tax websites, or if a tax professional does your taxes, they may provide one.
- BONUS: If your schedule could use some help as you decide how to work your tax priorities into your week, grab my #1 Scheduling Secret for Less Stress & More Success for free Here.
- Find a CPA or accountant to take the stress away for you!