Organization Tips To Help With Tax Preparation

Like it or not, all business owners have to file their taxes each year.  And although business taxes are determined by the type of business entity (LLC, S Corp, etc), all business owners will need to gather a lot of documentation to give their accountant in order to determine the amount that they will pay.  So if you don’t want to pay a lot of taxes, then it is very important to have records of all possible deductions as well as a record of your income for the year.  

**Yes, there are common deductions like office expenses, business travel, advertising, etc but please make sure you have a discussion with your tax preparer to make sure that you are keeping track of everything that can be used as a deduction.  MORE DEDUCTIONS = FEWER TAXES!

Here are a few tips that will help you get your taxes organized:

1. Use Everlance(everlance.com) – Everlance is a great app to help you track your mileage automatically.  After your trip, all you need to do is to classify your mileage as work or personal.  But that’s not all!  You can also use this convenient app to track expenses.  Reports on your mileage or expenses can be prepared at any time by downloading your choice of a pdf or excel report.

2. Keep your bookkeeping records up to date and reconciled each month.  I know, I know, reconciling your bank statement is BORING!  However, if you don’t take care of this task on a monthly basis, it can get out of hand QUICKLY!  Did you know that a virtual assistant can actually help you with this?  If you teach them how you want regular items categorized in your bookkeeping software (Most of us have the same types of expenses every month, anyway.), a virtual assistant can then reconcile your bank statement for you each month. They can even set up rules in your bookkeeping software so that many of your expenses will be categorized automatically!

3. Try to use one credit card account and connect it to your bookkeeping software.  This will make your life so much easier!  You will automatically know that anything charged on this credit card is some type of business expense.  And all of these expense transactions will automatically be captured by your bookkeeping software.

4. Use Genius Scan (thegrizzlylabs.com/genius-scan/) – Genius Scan is a scanner app that has many helpful uses but I find it very handy in keeping records of my receipts.  It is easy to download to your phone, quickly scan a receipt, and then upload to a cloud storage system like Google Drive, OneDrive, etc.  I never worry about keeping up with receipts anymore!

I hope that these tips have you motivated to stay tax organized!  If you have not been great about organizing your tax records in the past, it is a new year, so make 2023 the year that you get organized and save a ton on your taxes!

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