Recently, I attended a networking event where a business owner started a conversation about taxes. She shared how stressed she felt about getting everything in order for this year's tax season. 

The picture she painted made me think of ways she could prepare without feeling overwhelmed. So, I decided to share the tips I use to make the process smooth and easy. 

Four smart moves to get ready for tax season:

1. Organize Financial Records: I categorize my records by receipts, expenses, bank statements and income. I also use my business account for business purchases, making tracking easier. HoneyBook is my go-to tool for managing financial records, I can download a monthly or yearly report of my income and expenses, which I find useful.

2. Upload and Create a Digital File: I take photos of physical receipts and upload them to a folder in Google Drive. I also add digital receipts to keep everything in one place for easy download and print. Additionally, tax records should be kept accessible for at least three years.

3. Review Deductions: Running a small business comes with various deductions and credits. It's always a good idea to identify the ones you qualify for to maximize your savings. This can be tricky, so if you're unsure, consult a tax professional. Also, be sure to have proof of any deductions or credits you're claiming. 

4. Plan for Tax Payments or refunds: Set aside a percentage of your income to be used for tax payments, whether filing quarterly or annually. This eliminates late fees and penalties. If you expect a refund, consider reinvesting it in your business or applying it toward future tax obligations.

Now is the perfect time to implement smart financial moves to create a consistent cash flow. It's easy to overlook these steps until you're reminded of the approaching tax season and the work that comes with it.

Making these smart moves can save you time and money while eliminating stress. It can be a challenging time for some business owners, especially when their books aren't in order.

If it feels overwhelming, ask for support and delegate the task of organizing your financial records for tax season. You'll benefit by feeling relieved, confident and empowered.

Please reply here and tell me which smart move consumes your time.  

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