Are Your Financials in Order?
Tax time is almost here! April is around the corner and we’re keeping up with our 2017 plan for massage therapists. How are you doing so far? The idea behind planning for the year is to instill good habits and put systems in place that set you up for success. Once it becomes routine it doesn’t take so much of your time and energy. Here are some tips to get things in order for filing taxes this year…
Round up all your forms
If you haven’t done it already, round up all your W-2’s, 1099’s and any receipts you may have. If you’re using an accounting program and have been tracking your receipts monthly (or as you get them), reports with exact figures will be at your fingertips.
Decide how you plan to file
Tax preparation is not something to be taken lightly. Unless you enjoy reading up on the ever-changing tax law, having a tax expert in your arsenal is good for business. Self filing options are available and are easy to use, but it’s still a good idea to have an annual meeting with a tax professional to make sure you are taking advantage of all the tax deductions available and your records are in order.
Make the time
This time of year can be overwhelming. Catching up on entering receipts, printing reports and the sudden inflow of mail labeled “Tax Document Enclosed” can fluster even the most organized people. Schedule time to sit down and tackle everything at once. While you’re at it, think about ways to make next year easier. What kind of small tasks can be done throughout the year to make tax time more efficient?
File receipts as you get them and have a folder or large envelope just for specific tax items: receipts from charitable giving, the previous years tax prep receipt, excise and property taxes paid, etc. Anything that’s paid throughout the year, put your receipts in this envelop and all your documents will be waiting for you when you’re ready. Take it one step further and make a list of forms needed before you even think about doing your taxes. Check them off as you get them and you’ll know when it’s time to file.
Keep it simple
This takes organization one step further. Clear clutter and unnecessary documentation. Business owners should maintain appropriate records, but it’s helpful to know when to draw a line. If you want to do away with hard copy records, there are many apps available to keep digital receipts, track your mileage, and streamline your expense report. No matter how complicated or simple your taxes are they can always be a little easier. Keep these tips handy for the rest of the year so tax prep will be a snap!