If you find yourself scrambling to prepare for tax season each year, this one’s for you.
Lack of preparedness at tax time can cost you and your business heaps of money and time (not to mention peace of mind). The good news is preparing for tax season in advance is easier than you might think. So why not make some smart moves now that you’ll thank yourself for later?
We’ve got three easy ways to make tax season easier on yourself and your business, which you can start at any point during the year (but the sooner, the better).
3 Easy Ways to Prepare for Tax Season
1. Keep your financial records up to date all year
Being prepared for tax season begins with getting your financial records in order – but you shouldn’t wait until right before tax season to do this. Maybe working under stress is something you’re into, but we don’t recommend it for the sake of your health and sanity.
“Keeping your records updated throughout the year could take just an hour or less each month.”
The more diligent you are with maintaining your financial records, the easier it becomes over time. Keeping your records updated throughout the year could take just an hour or less each month. And, when it’s tax season once again, you’ll already be well ahead of the game.
2. Invest in cloud accounting software
If you haven’t yet climbed aboard the cloud accounting train, here are just some of the reasons why you should do so immediately.
With cloud accounting software like QuickBooks Online or Sage Intacct, you can have:
- Anytime access to your financial records
- Clear, reliable financial data to guide your business decisions
- An efficient and streamlined way to manage your finances
Even better, cloud accounting software makes tax season a walk in the park compared to the old-school methods involving file folders and Excel spreadsheets. Assuming you stay on top of managing your finances throughout the year, you or your accountant will be able to easily download clear, accurate financial reports with all the essential information for filing your taxes. Click, click, done.
3. Automate everything you can
By automating your processes, you’ll be automatically more organized for tax season.
With so many time-saving tools at your disposal these days, you have the option of automating just about any kind of financial task you can dream up. Apps like Bill.com and ExpensePath integrate with your accounting software for a simple, streamlined solution to managing your finances throughout the year.
Some examples of tasks you should automate:
- Bill payments
- Expense tracking and reports
- Fund transfers and deposits
The initial setup for automating your processes will likely require a small investment of time on the front end, but the time you save yourself in the future will make it all worth it. Not only that, but your financial documents will be so well-organized for tax season, that your accountant might actually cry tears of joy.
Read more: How to Make Your Business More Efficient
Ready to make tax season easier?
In short, it’s generally a good idea to prepare for tax season long before it’s actually glaring you in the face.
If you’d like some help getting the necessary tools in place to simplify your life and spare you a few gray hairs, you can reach out to our team at FusePhase for some support. We’ll help to set you on your way to a smoother ride when it comes to tax preparation and all things related to your business finances.
How do you prepare for tax season? We’d love to hear what changes you’ve made to your processes that have helped you and your business.