5 Tips to prepare for tax season

We felt the collective eye roll, but it’s that time. We at Officeheads would be doing a disservice if we didn’t discuss taxes. Since you can’t avoid it, or die of boredom via line-by-line instructions, let’s just cut the excuses and get started. 

Tip 1: Step away from the ledge

Maybe your record-keeping wasn’t perfect. Or maybe it was, but you still get that sinking feeling come March or April. We realize that you didn’t become a freelance marketing consultant to be a part-time bookkeeper. But taxes are something – no matter what career – that must get done, and the best way to do them does not include a panic attack. So take a deep breath, open your files and start going over the past twelve months by seeing where you stand. 

Tip 2: Sort through receipts, invoices, stubs and spreadsheets

Figure out exactly how much money you made and spent. If you kept track of incomes and expenses on spreadsheets, double check them with actual invoices, check stubs, bills and receipts. Then, double check it again. 

Tip 3: Rule-breakers beware

Everyone knows the two non-breakable tax rules: File them. Pay them. Yet as you sift through all the intimidating forms and pages of line-by-line instructions, you may see that there are advantages to being an entrepreneur. As a business owner (big or small), you’ve got some serious advantages.  Research the deductions you get for being a business owner, and educate yourself on exactly how much of your income is taxable. The more you know, the more you save in the short and long term. 

Tip 4: Get a second opinion

All the forms are complete and the check is ready to be mailed. You kick your feet up, lean back because you think you’re finished. Not so fast. We applaud your confidence, but we suggest you stay on the safe side and talk to a financial professional. More specifically, get an accountant. Worse-case scenario: they reassure you of your vast knowledge of tax laws. Best case? They find that you missed thousands in deductions, or that you made a crucial error that could net an unexpected five-figure bill a year down the line. Either way, win for all. 

Tip 5: Celebrate…and start planning for next year

You’re alive! You made it though the eye-glazing tasks of reading dreadfully small-type forms, recording and re-recording dollars and cents, and a meeting with an accountant. Bust out the sparkling apple juice, and start creating a spreadsheet with income and expenses for 2011. The earlier you start thinking about next year, the easier it’ll be when that time comes. Better yet; get yourself a bookkeeper to do the dirty work for you.  That way you can focusing more on running your business, not working in it.