If you’re like me, this year has flown by and somehow it’s November. Leaves are falling, it’s getting darker so early, and it’s time for you to ensure your small business is prepared for tax season.
Best case scenario, everything is already organized and in great shape, so you don’t need to worry at all right now. If you have a bookkeeper, use my bookkeeping or retainer services, or do your own bookkeeping consistently, you’ll not be feeling a sort of dread.
For those that are a bit behind, fret not. Now is the time to start getting organized or seek out help if needed. Here are some tips to get you going.
MAKE A SCHEDULE
It will be easy to say “I’ll do this tomorrow or next week” and before you know it, it will be January. Figure out when you can devote time to getting your books organized. This schedule and time will be largely dependent on the size of your business and how behind or disorganized things may be.
DOCUMENTATION
You will need to gather all of your business documentation, including financial records & statements, receipts, invoices, W-9/W-4’s, etc. Ideally, you do this every month, but if you’re playing clean-up, start this now.
KNOW AND TRACK YOUR DEDUCTIONS
As a business owner you have deductions you can, and should, take. This isn’t some loophole, but for you to do this correctly, you need to research or ask a bookkeeper/accountant on what is accepted.
Some popular deductions are:
- Advertising & Marketing costs
- Business Insurance
- Contractors/Sub-contractors
- Salaries & Benefits for employees
- Education Costs
- Legal & Professional Fees
- Job Supplies
- Office Supplies
- Software
- Home Office Expenses
- Travel Expenses
- Meals
**These are not your only possible deductions
KNOW HOW MUCH YOU WILL OWE
In order to know how much you owe the city, state, & federal government, it’s imperative that your books are organized. Time and time again I have business owners come to me panicked that they weren’t ready for the big tax bill come April. Ensure you’re putting money aside EACH MONTH to prepare for this and paying your estimated quarterly taxes – it can be annoying, but you will be SO grateful.
MARK YOUR CALENDAR FOR DUE DATES
As a business, there are a lot of due dates to keep track of.
Quarterly Taxes: you are supposed to pay quarterly estimated taxes to the state & federal governments. It’s important to know these dates. To learn more about estimated taxes, you can read this post.
The Q4 2022 estimated tax payment is due on January 16, 2022
The Q1 2023 estimated tax payment is due April 18, 2023 (same as deadline for 2022)
2022 Filing Deadlines:
January 31, 2023:
Due date for employers to send W-2 forms // due date for 1099-NEC, 1099-MISC, & 1099-K’s to be sent.
March 15, 2023:
Filing & Taxes are due for some businesses: partnerships, multi-member LLC’s, & s-corporations.
April 18, 2023:
– TAX DAY for individuals, self-employed individuals, gig works, independent contractors, retirees, & employees
– Deadline to File Form 4868 (requesting an extension to file individual tax return)
– First Quarter 2023 estimated tax payment due
September 15, 2023
Deadline for extended partnership & S-corp returns
October 16, 2023
Deadline for extended C-corporation & individual//self-employed/etc
FIND A BOOKKEEPER & ACCOUNTANT
Running your own business means you wear a lot of hats. Your business finances are essential to the success of your business, and if you do not have time to maintain these records during the year, it may be time to find a bookkeeper who can help you. Not sure on what bookkeepers can provide you? You can find a FAQ here & information on what a bookkeeper can provide you here.
It’s important to note that most bookkeepers are not CPA’s (though a CPA company may offer bookkeeping services). Ensure you have someone you trust & like that can help you navigate tax season with filing all necessary paperwork before the new year.
As always, feel free to reach out with any questions you may have! I offer a complimentary 20 minute discovery call for all new clients.
xx Lotte
Hey, I'm Lotte, and welcome to my blog, She Means Business.
I'm an expert bookkeeper and business/operations manager who loves supporting female entrepreneurs so they get their time back. Over the past 5 years I've supported dozens of women through my services, and I hope this blog can help you. Browse & Enjoy!
