This TAX Season may be over, BUT what should you be dOing NOW for the next?
You've made it through another tax season! You might be feeling as though the pressure is off and now you can take a break, grab a cup of coffee, sit back and relax. That's great but it's not so accurate. In fact, what you should be doing is reflecting on those things you could've done better last year, for this tax season to have gone as smoothly as possible. Why do I say that? Two reasons:
1. Time flies.
It may feel as though another year is a long time for now but we all know time flies and next thing you know, next tax season is right around the corner.
2. Taxes is one of the most worrisome and stressful things for small business owners
Or, should I say, business owners all around. The more clients I speak to, the more I realize this to be a common and consistent concern.
So, with that in mind, let us explore what you should be doing from NOW to be as prepared as possible for when next tax season approaches. Check out these few tips:
Just as mentioned above, reflect on what could've been done better. This is a great place to start because every business is different and therefore what Business A might have done wrong may not be what Business B could've improved on, and vice versa.
Chances are, you had so much on your plate all year around and unintentionally procrastinated on planning for the tax season. May I dare to say, it was the last thing on your mind all year around, until maybe January? This is usually the case, and so when we fail to plan we are, inevitably, planning to fail.
3. Work on it little by little
What do I mean by this? Simply put, structure you books (and bank account(s)) in such a way that it forces you to have to deal with "tax prep" at least once a month. It's extremely hard to do in 2 or 3 months what should've been done in 12.
4. Save little by little, but intentionally
In conjunction with tip #3 above, as you work on it little by little, you should also be saving little by little but intentionally. Meaning, it should be put away with a purpose, taxes, in this case, not to be tampered with until the appointed time. This final tip is probably the most important one of them all. Why? Because if you reflect, set up a plan, work little by little, BUT don't set money aside, all you've done is the "paperwork" but at the end of the day, you'll have to come up with 12 months worth of cash in 2 or 3 months. That's stressful for anybody. So my advise is, make sure you work the tips as simultaneously as possible to attain the highest results possible.
These are only a few but I hope they help you better your get ready for next tax season! Every business is different, so we definitely recommend reaching out the pros for help. Contact me and see how a free consultation can asses your specific needs and get you going on the right direction!