Episode 52: Taxes Freak You Out?! Easy Tips to Make Sure You Are Tax Savvy.

In this episode I discuss how to get on top of your taxes this year, so that next season is even easier! The theme throughout this episode is that you need to record all your transactions and make sure to keep business and personal transactions separate. A good way to do this can be to have a separate personal and business bank account. Then, you just need to make sure that everything gets recorded correctly in your bookkeeping software. For this I recommend QuickBooks.

QuickBooks

I know that it can be stressful during tax season especially when your books from 2020 are in disarray due to the pandemic. The single most valuable piece of advice I can give is to get your books in order! QuickBooks is a great piece of affordable software that I recommend for managing the bookkeeping of your business. Find out more about QuickBooks here.

The following points are common areas that you should focus on when making sure that you are recording all your transactions and differentiating between personal and business transactions:

• First and foremost, make sure that your books are structured and organized! Get into a good habit of scanning or filing all your receipts. You never know when they might be required, so getting into a habit of saving all of them is vital!
• Keep track of any trips or visits you make that relate to your business. This can be done manually, in your accounting software, or with an app on your phone. Knowing what driving or traveling was done for your business is vital for accurate tax deductions.
• Similarly, you should take note of any courses or business development programs that you took part in as these count as business expenses and are tax-deductible.
• Make sure that you pay your quarterly tax estimates. This is important because you won’t get a huge bill in April, you won’t have to pay penalties and it sets you up for a clean and efficient tax return.

Course: Bookkeeping Basics Bootcamp

Remember: be current and consistent!

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