Are your business taxes completed & mailed yet or are you running behind (again) this year? Is tax time the bane of your existence? Tax paperwork does not have to be frustrating and exhausting. The word “extension” does not have to be in your vocabulary. Filing business taxes on time can be as easy as 1… 2… 3…

How to file your business taxes on time:

1. Set up a system!

Taxes don’t file themselves. Receipts don’t enter themselves. In order to keep up with your business taxes throughout the year, you need a system set up – ahead of time! If you are unclear about where things go & what to do with them, your papers will pile up and become overwhelming.

Set up a file system:

• By month, if using Quickbooks or other accounting software.
• By deduction category, if manually tracking.

Be sure to set up a system that is easy to maintain – KISS (Keep It Simple Silly). Keep employees who have business expenses in mind & be sure everyone understands the procedures and workflow.

2. Track it!

There’s an app for that! There are a variety of apps that will help you complete your business taxes quickly and easily.

• Mint – best for personal finances, but could be used for business purposes. It’s free and pulls in bank account information, debt, assets, etc. Track all of your finances in one place. It’s quick and easy to categorize, budget and set financial goals using Mint.
• Quickbooks Online – best for small businesses who do not have a dedicated financial person on staff. QBO is super easy to use – categorize expenses, click one button for Profit & Loss statements and more.
• Expensify – great for businesses with multiple employees who need to track expenses. Simple, easy to use interface and syncs to Quickbooks.
• It’s Deductible
• MileBug – track your mileage throughout the year for business, charity and medical purposes. This app can use your phone’s GPS to make tracking even more accurate.
• BizXpenseTracker – tracks mileage, expense and time.

Spreadsheet – if you like to track expenses manually.

3. It’s in the routines!

Tips for maintaining your system throughout the year:

• Write on your receipts. When you eat lunch with a client or business associate, write the names of the people who ate lunch with you on the top of the receipt. When you check out at the store, write “business” on the top of business expense receipts and write “personal” on the top of personal receipts.
• Keep business and personal funds completely separate. You should have separate bank accounts for each and do not intermingle.
• The IRS allows digital copies of receipts, so scan them in & shred the paper.
• Balance your checkbook monthly – make sure you have all of the receipts that correlate to business expenses. It’s much easier to look for them 1 month later than 1 year later.
• Create a “home” for all receipts. Have one place that you put them in your wallet or purse. Carry a small expandable file in your purse or car to organize receipts by category. Clean it out once per month.
• Schedule time each week to input expense data to your system. Schedule time once per month to reconcile and update everything.

If your project is too overwhelming or you have a back log of piles, we can help! We can help you sort through the piles of paperwork and set up a system so that next year’s taxes get done – EARLY! Call us today at 812-858-2457 for a free phone consultation!