5 WAYS TO SIMPLIFY TAX SEASON
That’s a wrap on another year, which means tax season is here again. Taxes can be stressful and overwhelming, BUT they don’t have to be. With proper planning, using the right resources, and professional execution taxes can be made simple. Here’s 5 ways to simply tax season!
1. Use a POS System
A “point of sale” system at the basics can schedule clients and keep track of transactions. This can relieve a lot of headache by having everything in one place. Keeping track of transactions is especially important when it comes to taxes because it can literally break everything down from sales, tips, and transaction fees. At the end of the year it is as simple as one pre-generated form. If you are still in the dark ages of pen and paper or using too many avenues to keep track it’s time to streamline!
2. Switch to Business Accounts
Business accounts across the board (Instagram, Venmo, Email,) are going to make you more professional, organized, and help to avoid any terms and conditions violations. But in terms of taxes, using a business account is going to simplify taxes because, again, everything can be found in one place. Virtual payment apps are now commonly used in and out of business so by keeping them separate and using the appropriate accounts it will make everything clear cut. You do not want to have to prove every transaction as business or personal!
3. Keep your Money In & Out of One Place
POS systems and business accounts are great for keeping track of money coming IN but when it comes to self employed taxes we also need to keep track of money going OUT. Regardless of how many forms of payment you accept, all of the money should be funneled to the same place. That is also true for money coming out! If all of your expenses come out of the same place it makes keeping track a breeze. Think of it as a virtual stack of receipts!
4. Plan Ahead!
We are our own boss and taxes are not automatically taken from us, we have to be responsible. It may be too late to implement some of this advice for the current season but it’s not too late to start planning ahead now—taxes are here every single year. A little planning goes a long way! With the right planning you can even get a head of taxes to avoid one lump sum.
5. Hire a Professional
As a lash artist who has survived handfuls of tax seasons, my best advice always is to hire a professional! We can use all the right resources and keep the best records but it never hurts to have a professional to run everything correctly.
