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Tax season does not need to be a time for panic. In fact, with the right tools and habits in place, tax time can be smooth. No, really!
One of the easiest ways many freelancers and small businesses help take the stress out of tax time is by switching to an online tax return. It saves hours of paperwork, and takes the chances of errors right down.
Below are some more quick and easy tips to make your tax time more relaxed:
- Get Organized Now
If you can invest in the happiness and zen of ‘future you’ with just an hour or two a week, you’ll find tax season is easy-peasy. Using an online folder and spreadsheet, you can take a little time every week to review your income and expenses.
Keep all your receipts, invoices and other necessary information (taking screenshots if you need to) in a secure, encrypted folder. Make sure this folder is accessible from anywhere with an internet connection, so there is no restriction on how and when you work on this aspect of your business.
- Keep Business & Personal Finances Separate
Lots of ecommerce business owners run everything through just one bank account – personal and business finances together. Mixing these things makes tax time a lot more complicated.
Opening a dedicated business account will make it much easier to track costs. There may be extra applications you need to allow for, like PayPal and the associated charges, but they will still be linked to your business account, so tracking will be easier.
- Be In The Know About Deductions Without Taking Risks
About 5% of revenues across the world are lost to fraud, with expense fraud alone contributing to over 14% of all known cases. For those caught attempting expense fraud, consequences can be anything from small fines to jail time.
Understanding your tax deductions is imperative, as it can significantly reduce your tax bill. When you know the rules have been followed, and you’ve claimed only what you’re legally allowed to, you can feel confident. It’s a smart, safe way to save.
- Don’t Be Too Proud To Get Help
Even with the tools available these days, and a bit of know-how, taxes are a lot. There is absolutely no shame in seeking some help from professionals who do taxes with their eyes closed. A registered accountant will take the bulk of the work away from you, and you’ll feel assured that it’s all above board and efficient, too.
- Make It Hopeful
We know that across the world, we hate paying taxes as it signifies (and can feel like) a loss of control. It can also feel a bit heavy knowing you’re about to be landed a big bill, especially if you haven’t been saving for it all year.
What if, instead, you treated your taxes like a great time to look ahead? You can set new goals, review budgeting and behaviors, and invest in new services and tools to help you stay on track in the coming year.
- Buddy Up
Whether it’s your partner, pal or industry connection in-person or online, buddying up for a tax session can make the whole process easier. You can problem-solve together, keep each other accountable, and keep the snacks and coffees flowing between you.
Tax time will be stressful, but with the right help, attitude, company and lots of refreshments flowing, it can be efficient, positive and set you up well for the coming financial year.
