With Tax Day right around the corner, if you’re a small business owner, you may feel like you’re drowning in receipt piles, invoice stacks, and tax forms.
Tax time can certainly be scary. After all, one small mistake could be costly for your business. But being over-stressed and anxious won’t help. If you feel like your crumbling during tax season crunch time, here are a few tips to reduce your stress.
Get educated. The US tax code is far-reaching and ever-changing. Do some research to find out if there have been any recent tax code changes on a federal, state, or local level that will affect your business. When you’re educated about these updates, you can avoid unpleasant surprises when filing time rolls around and be sure you’re ready for next year.
Use all available help. You should absolutely be making an appointment with your accountant, if you haven’t already, but know there are other resources available to help keep your tax woes to a minimum. For example, W2 and 1099 software is available to help you prepare and send the necessary documents you’ll need to distribute to your employees and contracted workers. There are also apps to help you get organized (and stay organized for next year!), and the IRS even has the Small Business and Self-Employed Tax Center, which is full of resources to help you prepare your taxes.
Don’t panic. Preparing your taxes is a step-by-step process, so treat it as such. You don’t have to have everything ready all at once. Write out a tax prep schedule, setting deadlines for things like gathering your key documents, creating a list of deductions, and so on. Take your prep one step at a time as you approach your appointment with your tax preparer. And remember, if you’re really getting down to the wire, depending on your business type, you may still have time to file for an extension.
Get inspired. Crunching numbers and staring at documents all day will probably not seem very inspiring, but if you squint, you’ll be able to see the light at the end of the tunnel. Tax time will soon be over. Your return will be in the mail, and if you’re lucky, you’ll be getting a refund. Spend some time thinking about how you’ll put it to good use. How can you invest it back into your business? Perhaps you can upgrade your website or buy those new office chairs your employees have been wanting. If you aren’t expecting a refund, think about ways you can improve your organization systems and money management so that you’ll have one to look forward to next year.
While no one will likely be describing tax time as “fun” any time soon, it doesn’t have to be a major stressor. By preparing carefully and looking to the future, you can stay positive until you’re through the worst of it.