Thinking of ways to make your business taxes easier? We’re in the midst of tax season and you’re probably remembering just how complicated business taxes can be. There’s a lot of information to go through and if you weren’t organized throughout the year, it can be quite a headache. If you’re committed to making your 2021 business taxes easier, we have some tips to help you out.
If you’re only thinking about your taxes during tax season, you’re already too late. In order to make the process as easy as possible, you want to make sure you’re organized throughout the entire year. We’re already in March so you should really be thinking about what you need to keep track of for your 2021 business taxes now.
Hire a virtual bookkeeping assistant
If you’re someone who has trouble staying organized, especially when it comes to finances, you might need some assistance. A virtual bookkeeper can help you keep your books up to date and make sure that things are marked with the right information so that it’s easier to recall when you need it.
They would also be able to help you stay organized with all the documents and deadlines you need to keep track of. It will make your life easier but also make sure that everything is in order when the next tax season comes. A virtual assistant could help you save money.
Use an accounting software
Instead of relying on a physical notebook or scattered information across multiple places, streamline everything in one place. Accounting software is a helpful tool.
Gusto is great for managing payroll, paying contractors, and managing other HR-related tasks.
QuickBooks, on the other hand, is the tried and true accounting software that we’d recommend. There are different versions but you’ll have plenty of options for invoicing clients and tracking your expenses. You can even use QuickBooks for payroll as well. If you’re working with an accountant or a VaVa virtual bookkeeper, QuickBook also allows them to have free seats in your account to monitor things for you.
Digitize your receipts
If you still keep your receipts in a shoebox, it’s time to step into the modern world! It’s so much easier to have all your receipts scanned into your computer. There are even apps on your phone that can help with that process. Once things are scanned in, make sure you have a system to organize them so that you can find exactly what you need in the future.
Have a cloud-based system
Along with digitizing everything, make sure that things are saved in a cloud-based system. If your computer dies or your shoebox of receipts burns up, you’re out of luck! Can you even imagine the level of stress that would bring?
If you have a cloud-based system, you can access your information anytime you need it. Even when your computer gives out or you’re out of the office you’ll have access.
Your accounting software might have options for uploading documents or you can use something like Google Drive to keep track of everything you need.
Keep every business expense on the same cards
If you want to maximize your tax return, you’ll need to keep track of business expenses throughout the year. One of the easiest ways to do this is to be diligent about paying for everything from cards specifically for your business.
If you have a couple of business expenses on your personal cards each month, by the time you need to file your tax return, you might have lost track of those charges. If you keep everything on business cards, you’ll know exactly how much you can deduct.
Know when you need to pay
For some businesses, you have to pay taxes quarterly while others just pay annually. Keep track of what you need to be doing so that you don’t have to pay extra fees. Your accountant should be able to help with that process. They can make sure you know when to expect those payments and what documents you need to have ready.
Make your 2021 business taxes easier
If you’re stressed about your 2020 business taxes and ready to make 2021 business taxes easier, we’re here to help. Schedule a time to chat with us about working with a virtual bookkeeper or assistant.