I survived my first tax season as a small business owner! It was actually a lot easier and less stressful than I was expecting, but I also have a pretty straightforward business and had minimal income from my business in 2019 – lol.
I did learn A LOT throughout the process of filing my taxes as a small business owner for the first time, and I wanted to share some of the key takeaways I’ve had this tax season.
Here are my tips for handing tax season like the boss that you are.
Keep Your Receipts – Especially Gas Receipts!
When I was working as a marketing consultant for a media company, I learned that I could claim my vehicle expenses for work, and that it makes quite a difference! I started putting every single gas and maintenance receipt into my centre console, which made it easy to go through those expenses when tax time rolled around.
I have also made a habit of keeping receipts for office supplies, dinners and coffee meetings that were based around business conversations and advertising, including Facebook ads and giveaway purchases.
Keep Your Documents In Order
I am so bad at this one, and I need to learn! Every new section that I went through on TurboTax Self-Employed service, I would have to run around the house looking for this form or that document. I thought I was organized, but I WAS NOT. My advice to you: don’t be like me. Keep all important documents organized in a place that you will easily be able to find them. It will make tax time MUCH easier.
Use An App To Track Income and Expenses
Spreadsheets and notebooks are great, but we realized that we can’t rely on those things when it comes down to it. Now, we’re both using Quickbooks Self-Employed service to keep track of everything. You can even set up the app on your phone to automatically track your mileage when you’re driving!
Get On It Early
Kirby and I both filed our taxes basically as soon as we got our T4s, and it felt so good to have it out of the way! We both received returns as well, so getting those deposited into our accounts early was helpful. Don’t let the stress of the deadline get to you and file your taxes as soon as you can.
These are just some tips from my own experience, but make sure you consult a professional if you have questions!
Are you a small business owner? What are your tips for handling tax season?!
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