Written by Jenn Dobransky (Microenterprise Specialist, Midcoast Region)
Taxes and record keeping can often be a source of confusion and anxiety for taxpayers. These emotions are typically a result of a lack of knowledge that many start-up businesses have. But with a little bit of information, that confusion dissipates and the anxiety transforms into empowerment.
Get Your Records in Order
The first step in preparing your taxes is having a sound record-keeping system. Ultimately, having a bookkeeping system makes the tax filing process much easier. Open a business checking or dba (doing business as) account and use it properly–deposit all your income into the account and use your debit card for business expenses only. This first step ensures that you will at least have a basic record keeping system in place.
Have a Willingness to Learn
Learning how to create a record keeping system, setting financial goals for your business, and understanding your tax obligations are all readily accessible aspects of running a business. You can be as successful in your record keeping and understanding your taxes as you are in delivering your high-quality product or service to your customers. All it takes is some time investment and willingness to learn.
Avoid the Head in the Sand Approach
Having a plan and sticking to it is the clear way to reduce your stress during tax season. It will leave you with more time to enjoy those spring flowers!
If you would like to learn more about owning your own small business, check out our tuition-free workshops & classes!