What in the Uncle Sam?
Fryaands, kicking off April with Stress Awareness Month. First, can we pause and let the fact that it’s April soak in - where does the time go? Next, as a new business owner, this month was incredibly taxing, ha. Pun 100% intended. And we found ourselves asking, “What in the Uncle Sam,” happened this month.
We get so wrapped up in content creation, that oftentimes our business logistics are put on the back burner. All is well, until we realized that if we didn’t get that business stuff together, then there would be no business at all. Cue the stress alarm, majorly. Not to worry though, we did some yoga (does listening to “yoga” by Janelle Monae count?), kinda?
We could share with you all kinds of fun, relaxing things to do, however what we realized is that those things are more reactive, and that’s not our style, usually. In the spirit of full transparency, we dropped the ball on getting all of proper paperwork together to even do this, our passion (hey, judgement eyes, we get a pass too, mmk.) And just in the knick of time, we got it done, but it was definitely a learning lesson.
Being proactive is typically one our best qualities. However, you don’t know what you don’t know. So before we go spilling all the wine infused insight about preparing your small business for tax season, know several things: Surround yourself with people who genuinely want to help you grow. If for nothing else, they’ll remind you about all the things that are due (what you thought it too, we just said it). For the love of keeping your “books” straight, enlist the expertise of a financial guru.
Note, we are not tax professionals. Again, we are not tax professionals. We are a small business that was given a few pointers for a smoother tax season. We’re just spilling the beans, and below we’ve listed a few things that are incredibly beneficial for small business survival.
Be sure to reserve 10-15% of funds in preparation for tax season. You will owe something.
Depending on how you filed, meaning your business formation, there will be several things due to your respective city and state. More than likely your accountant will handle this, but there is always a price. If you’re able, know those re-up expenses and include them in your annual budget.
Keep up with your mileage…all of it. At the start of every year, take a reading of your odometer and the same at the end of the year. Keep track of your business miles separately.
Home office deductions. Whoa this is a biggie and we’re still trying to wrap our head around this one. Our take aways. If you work from home, have a dedicated (large) space for your office.
Keep all things business and all things personal, separate.
Reconcile your “books” monthly. Any discrepancies from your bank within 60 days can be corrected. Anything after, maybe.
These 6 steps are a major game changers. You’ll practically dance into your next dance tax season with a little two step. And you’ll do it stress free.
P.S. We’re paperless. However, our respective state not so much. E-file your docs for easy access. For i-phone users, there’s a “scanning” tool in your notes. Use it, and make it private. Helps with access to your important documents on the go. How did your tax season turn out? Comment below.
As always be Notably, you!