Business Tax Tips: 4 Ways to Spring Clean Your Bookkeeping
Spring is in the air, and the smell of new beginnings is palpable! It’s also a busy time for businesses across all industries, with the arrival of tax season. Most business owners know that effective bookkeeping is often the key to a stress-free tax season. That’s why our tax pros are here with some ways to spring clean your bookkeeping and run your business like the boss we know you are!
1. Spring Clean Your System
Springtime is the perfect season for turning over a new leaf – we recommend starting with your recordkeeping system! Even if you have gone digital, not all software is created equally. Take some time to examine your current system for recordkeeping, identifying any inefficiencies. Then, explore other software options that might fill those holes you’ve found in your current process. If you utilize a POS system for your business, you might look into a more integrated option to track your inventory, sales, and store taxes. Better yet, if you can upgrade to a system that also makes it easy to export these records for tax prep, you’ll save yourself a lot of money and free up a lot of time!
2. Spring for a Savings Account
Most of us understand the importance of building some financial security with a personal savings account. Whether that includes rainy day, emergency, or retirement funds, a penny saved truly is a penny earned. However, what many business owners don’t consider is building a business savings account for taxes! To start, a tax savings account will help you organize your income more efficiently, especially if you must pay estimated quarterly taxes. Furthermore, putting away a 15% – 30% of your income into a separate tax savings account will go a long way in simplifying your banking. Just be sure to report any taxable interest you earn from this account to the IRS!
3. Spring Clean Your Strategies
While you are exploring ways to give your bookkeeping system a facelift, it’s a good idea to make a list of your personal and business goals for the coming year. If you have set your sights on cleaning up your recordkeeping process, a tax savings account is a great place to start. If efficiency and ease is your bookkeeping goal for this next year, you might be due for a digital filing system upgrade! Another option to make your life easier is hiring a tax pro, who can help you with all of it.
4. Spring for a CPA
So, business is booming and your taxes have grown in complexity – this is a wonderful problem to have! For many business owners, asking for help can fell like admitting defeat. After all, you didn’t build a business by letting others do the heavy lifting! However, the need for a tax pro often comes with the territory of growth. The right CPA will do more than your tax returns – they will join you in the trenches and help you continue to grow with the right strategies.
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