If you own and operate a small business, you’ll want to pay close attention. Keeping tidy records could save you big bucks during tax time — and here’s how.
In today’s episode of Your Money Minute with Tracy Stewart, CPA, I want to share a few practical tax tips for small business owners.
If you run a small business, I can’t stress enough how important it is to keep good records. When doing your taxes, you will want to be able to quickly and easily reference details on how you earned and spent money over the course of the year. Staying organized will help you do just that.
I also can’t stress enough how important it is to have a separate bank account for your business. Do NOT make deposits or spend money out of your personal bank account. This will only lead to headaches and frustration when trying to make sense of your business financials while doing your taxes.
Keep copies of receipts so that you can get plenty of breaks at tax time. Whether you keep paper copies — or store them digitally using a service like Evernote — make sure you can quickly and easily locate details on your expenses. Staying organized will be your best asset!
Financial independence is unbelievably liberating. When you’re hustling hard as a small business owner, get the biggest breaks and make tax time smooth sailing by being diligent and tidy all year long.
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