A Guide for Entrepreneurs on Managing Tax Season

There are so many things to keep track of as an entrepreneur, it can be hard to know if you’re doing all the right things. In this blog you’ll find what you need to know about making tax season manageable. 

Pay Quarterly

Especially if you’re new to the entrepreneurial world, make sure you reach out to your CPA for guidance! One way to avoid underpayment penalties is to ask your CPA to help you pay your taxes quarterly. That way you can make sure that you are staying ahead of your tax obligations and what you’ll need to pay. 

Open a savings Account and gain interest

To give yourself a cushion, I recommend entrepreneurs open a savings account to gain interest. This account will come in handy for any unexpected business payments, and help your money make more money! 

Keep your files organized

It sounds cliché, but having clear and well-organized financial documents will make next tax season much smoother. Make sure the system you’re using makes sense to you and is something you feel confident regularly checking and updating. If you don’t like or understand the system you’re using, chances are you won’t manage your money well!

Keep your business and personal finances separate

To have a healthy and successful financial situation, you need to keep your personal and business finances separate. This process makes things easier come tax time and gives you an accurate view of your businesses’ financial health. 

Check in with your cpa

The best thing you can do to make next tax season manageable is check in with your CPA. The communication you have with your CPA should be ongoing throughout the year, not just during tax time. To be really on top of your taxes, reach out as soon as you can and ask what information your CPA needs from you to complete your taxes. 

Tax season doesn’t have to be stressful! By following this guide and implementing these steps you can make tax season a chance to grow.