Well, it’s that time of year – tax season. I can hear the collective “ugghh!” from here guys. This time of year is stressful just for personal taxes, but adding a LLC to the mix takes it to the next level. Here are a few tips to help keep your small business (or even yourself) sane during tax season and beyond!
Tax Season (and Beyond) Tips
- Get Organized – Keep it Together!
- One of the best things I ever did for keeping our business documents was to identify one single place to keep all business documentation. This means receipts, contracts, prior year taxes, etc. This way, I know exactly where to go when I need to get my hands on something.
- One of the best things I ever did for keeping our business documents was to identify one single place to keep all business documentation. This means receipts, contracts, prior year taxes, etc. This way, I know exactly where to go when I need to get my hands on something.
- Get Digital – Buy a Shredder!
- I really despise paper. I really don’t like keeping track of it, and you can’t search it easily. To cut down on the paper volume that we store, I scan everything that isn’t already digital. Yes, everything. Receipts, business documents (like our official LCC designation, tax files, contracts, etc). Once it’s scanned, it is digitally filed in our cloud storage for the business (Google Drive not sponsored). Once it’s scanned, it’s shredded.
- I really despise paper. I really don’t like keeping track of it, and you can’t search it easily. To cut down on the paper volume that we store, I scan everything that isn’t already digital. Yes, everything. Receipts, business documents (like our official LCC designation, tax files, contracts, etc). Once it’s scanned, it is digitally filed in our cloud storage for the business (Google Drive not sponsored). Once it’s scanned, it’s shredded.
- Get The Right Tools
- We rely on a cloud based accounting software to help us track all income and expenses for the business. The software integrates directly with our bank accounts and automatically pulls in transaction info that I regularly classify. At the end of the year, I am able to produce a PNL (or Profit & Loss Statement) for our CPA at the click of a button. This also allows me to track how much we spend on specific categories, or how much income we received from a specific client. There are some big names in this space. Do your research and see what might be the best fit for you! Here are some ideas to get you started:
- We rely on a cloud based accounting software to help us track all income and expenses for the business. The software integrates directly with our bank accounts and automatically pulls in transaction info that I regularly classify. At the end of the year, I am able to produce a PNL (or Profit & Loss Statement) for our CPA at the click of a button. This also allows me to track how much we spend on specific categories, or how much income we received from a specific client. There are some big names in this space. Do your research and see what might be the best fit for you! Here are some ideas to get you started:
- Make A List – What Do You Need?
- To keep track of all the various items I need to gather for our CPE, I keep a list (can you tell I like lists?)! A couple years ago, I created a “Master Tax List” where I keep track of all the items we need to provide our CPA. Think things like investment statements, PNL reports, W2s, etc. Once we start receiving tax documents for the year, I start a folder to keep everything in one place. Then, I mark that item off the list. Once the list is full, we’re ready to see the CPA.
Trial & Error
The most important thing to remember about tax season is to create a workflow that works for you and your business. My tips will help any size business to take steps to a better tax season experience! Have other tips we should consider? Let the community know!
