5 simple tips to help home-based business owners get be organized and prepared come tax season. Doing these 5 things can help minimize the stress of filing taxes each year.
Filing taxes for a home-based business can be very stressful, especially for someone who doesn’t have any background in accounting or finance. With an efficient system and the right attitude, however, this task becomes easier and a lot less stressful.
Here are a few simple tips you can keep in mind throughout the year so you can avoid the stress that comes with tax season:
1. Keep your receipts organized. Finding missing receipts is one of the most frustrating things people have to do when they’re filing taxes. You can avoid this hassle, however, if you automatically store your receipts as they come in an organized file. You can do this by date or according to various classifications of purchases. It depends on how you do your taxes at year-end.
2. Print out online receipts. It’s very easy to miss receipts if you had bought something online for your home business. To prevent this common inconvenience, print out your online receipts right away and file them just like you would file any ordinary receipt.
3. Organize your tax forms. You’ll need to use a few different tax forms when you’re running a business from home. File these forms in separate folders, which each folder indicating what other documents you need to have with the particular tax form.
4. Take note of your credit card transactions. People sometimes forget to include purchases made with a credit card. You can avoid this by compiling your monthly credit card statements, taking note of which purchases each month were made for your home business.
5. Take advantage of electronic tax filing. The days when you had to send your forms to the IRS via postal mail are gone. Well, not really, but with electronic tax filing, the process has become much faster. If you have an accountant, ask him or her about electronically filing your taxes.
Follow these these simple organizational tips and you’ll be able to file your taxes for your home-based business much more easily and without going through so much stress.