For many small business owners, tax season is the most dreaded time of year. It doesn't have to be. The secret to a painless tax season is what you do the other 11 months of the year. Here's your checklist.
Keep Your Books Current All Year
The biggest driver of tax-season stress is disorganized records. When transactions are categorized correctly throughout the year, pulling together what your CPA needs takes hours instead of days.
Separate Business and Personal Expenses
Use a dedicated business bank account and credit card. This single habit eliminates hours of sorting at tax time and ensures you capture every deductible business expense.
Track Receipts in Real Time
Don't let receipts pile up. Use a tool that lets you photograph receipts as soon as you get them — or work with a bookkeeper (like Beyond Insite) that does this automatically.
Know Your Deductions
Common small business deductions include: home office, vehicle use, equipment, software subscriptions, professional services, business meals (50%), and health insurance premiums. Your bookkeeper should be tracking all of these throughout the year.
Work With Your Bookkeeper and CPA Together
Your bookkeeper keeps the records; your CPA files the return. When both work from the same clean set of books, nothing falls through the cracks.