I was terrified of filing my taxes this year, but then met Kristy Jones, an amazing business coach and consultant. Check out this guest blog post she’s written about understanding how to approach your taxes as a small business owner!
Death and Taxes are the only two things that we know will happen for certain.
I find that I get a lot of questions when it comes to how to manage money and how to keep track of income and expenses when you have a freelance, network marketing, or other small business. I recently had someone reach out to me because she was really nervous about managing her dreaded tax bill come April 15, 2017.
Lucky for both of us, she had completed a spreadsheet with all her income and expenses for the year. I was able to review and provide a few suggestions.
- Looking at the total amount of income that she made allowed us to determine which IRS tax bracket she might fall into for 2016. Asking a few more questions and determining how she might file was another area to look at. I led her to the IRS 2016 tax tables so we could review the information together.
Based on the questions I asked, we identified she fell into the 15% bracket and knew she had to put away 15% of her income. So simple, yet she had no idea to think of it that way before talking with me. Knowing where you fall in each of the tax categories helps you with further planning in the future so you have no big surprises when you go to do your taxes.
- Instead of using the spreadsheet she created, I suggested she use my favorite tool, Waveapps, to keep track of income, expenses and accounting reports for future ease and convenience.
I love this application because it’s free and is a great way to download the in’s and out’s of your bank account, credit cards and PayPal accounts automatically. Each month you simply go in and reconcile and document the appropriate categories for each entry.
I find that many people are not organized and wait until the last minute to work through their year long record keeping and then it becomes overwhelming. They miss things they otherwise would have been up to date on. By using and being aware of the above tips, it allows for more ease and less stress come tax time. And as your business grows, you are prepared by having an already existing foundational measure in place.
If you feel the need for further explanation or a consult of your financial situation and how to best prepare for 2017, I would be happy to provide some suggestions based on your current situation.
Kristy Jones, Founder of Kristy Jones Coaching and Consulting works with entrepreneurs as their confidant to empower their choices around mindset, money, and purpose so they can leap into their vision of success.
You can find her at kristyjones.co or on Facebook.