I have the best tax advice ever. File your taxes. I know it seems obvious, but you have no idea how many requests I receive to file back taxes. I am not talking about a year or two past due. Five to ten years seem to be how long people wait before they think it is an issue.
But to be more helpful here are a few tips to help you stay on top of filing taxes.
1. Get a business credit card/bank account. This is by far the easiest way to keep up with receipts. Ditch the shoe box full of receipts. (I know this does not happen much, but I couldn’t resist). You don’t have to try to keep up with every receipt (unless you are required to by law). If you keep all your revenue and expenses in one or two accounts you can simply forward the information to your tax accountant.
2. Reconcile at least quarterly. I highly recommend monthly, but at the bare minimum you need to make sure that your books reconcile every quarter. It is hard enough to remember if you ate breakfast, it is almost impossible to remember why you spent $1999 eight months earlier.
3. Get a tax accountant. I know it may seem expensive at first. But tax accountants are experts. They can find deductions and credits that you did not even know exist. The money you save from “doing it yourself” will be nothing compared to a good tax accountant working their “magic”.
There you have it. Taking 3 simple steps can save you time, money, energy, and most importantly your sanity.