5 brilliant tricks of the trade to make tax time easier and less painful in your business

goals Mar 11, 2022

I did my taxes early this year. (YAY ME!)

This has NOT always been the case. And yes that is coming from the money queen herself. I usually do them the week before they are due. AND My birthday is April 14th and taxes are usually due April 15th so I at least try to get them done before my birthday because doing taxes on your birthday would completely suck.

 

But I had some time this past Saturday and dove head in.

 

These 5 tricks helped me make it more easeful and less stressful and I offer them to you to help you make it easier and less stressful so you can back to the things you love to do (which is probably NOT taxes!)

 

Organize and stay organized.

 

Energetically money loves a clean container to flow into. If you are not organized, tax time can feel so burdensome.

 

Throughout the year, save electronic receipts in a folder on your computer  (Example: name it Taxes 2021 or Receipts 2021) in your email delivery system and paper receipts in a yellow file folder. When tax time comes around, use those same folders for filing any tax documents you receive (most come in January) for tax preparation. This could be 1099’s, mortgage interest statements, dividend or interest statements, W2s, etc.)

 

AND you are early enough in the year to set this up for 2022.

 

Know your due dates.

 

This year personal tax returns are due on April 18th and corporate tax returns, (Forms 1120, 1120-A, and 1120-S) partnership tax returns (forms 1065) are due on March 15th or to file an extension on corporate returns.

 

Estimated tax payment dates for the tax year 2022 are as follows:

 

April 18th

 

June 15th

 

Sept 15th

 

Jan 17th, 2023

 

Sorry if your birthday falls on any of those. 

 

Carve out time.

 

Ok, this is where is see most people get hooked. Yes, doing your taxes takes time, but let’s look at a longer view:

 

Do you want to make more money?

 

Did I hear “Yes?” or maybe a “Hell YES!”

 

Well then... I hear ya loud and clear AND what you pay attention to grows. So consider the time you take to organize yourself and carve a day or two to prep your taxes and your finances for your accountant as watering your money plant to grow and flourish for years to come.

 

Got it? Good.

 

 

 Know your deductions (or know what deductions are.)

 

 A tax deduction is an item you can subtract from your taxable income to lower the amount of taxes you owe. And the expenses you incur in the course of your business year are deductible, such as office supplies, computer expenses, professional fees, such as coaching, bookkeeping, and legal expenses. Here are several lesser-known expenses that business owners may forget about:

 

  •  Interest payments. The interest portion you pay on credit cards or loans, including your SBA EIDL loan if you have one. Check with your lender to get the split between interest and principal.

 

  •  Employee gifts. Employee gifts are 100% deductible up to $25 per year, per employee.

 

  •  Mileage. Recording any mileage you use specifically for your business can be calculated into an amount that can be deducted. Check with your accountant to get the actual number

 

  •  Repairs or Maintenance. Any repairs you make to your home office including upgrades like furniture.

 

When in doubt, ask yourself, "Was this expense for my business?" and "Is this a typical expense for running this business?"

 

Know when to hire a professional.

 

You know where your zone of genius lies AND it probably is not bookkeeping, taxes, or organizing finances. Know your lane and hire out. I include bookkeeping and financial organization in many of my coaching services and my fractional CFO services (A fractional CFO is a partner in your company that handles all the finances and reports it to you in an accessible and informative way that help you leveraged money decisions) include bookkeeping, tax prep, with a coach approach all in one. This is my zone of genius!

 

Talk about plugging some money leaks, whether you are overspending or underearning, everyone who is doing money well is not doing it alone. Feel free to reach out and see if this is a service fit for a money queen like you!

Sending you massive amounts of tax love, patience, and abundance in 2022! 

 ‚ú®

All my best,

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