6 Ways to Make Tax Season Easier

It’s that dreaded time of year again—tax season! And as March 15 (deadline for partnerships, S-Corps, and LLCs) and April 18 (deadline for C-Corps, sole proprietors, and single member LLCs) looms, here are some tips to make your tax preparation go more smoothly.
4 Enlist a professional.

Tax preparation can be tricky, and when you own your own business, large or small, it is important to make sure you’re getting credit for all your business expenses and disclosing all your income.

From mileage and utilities to your cell phone bill and getting credit for usage of a home office, a certified tax preparer can help you optimize your tax return to ensure you maximize the credits available to you.

Keep those receipts.

Documentation is the key to a smooth ride when preparing your taxes. Many apps allow you to snap a photo and upload the receipt into a data bank to send to your accountant (my favorite is HubDoc). The easier it is to track the validity of an expense, the less time and money you will spend on tax preparation.

Invest in accounting software.

Regardless of your size, you might be surprised how easily the financial side of small (or large) business ownership can get away from you if you aren’t tracking your income vs. expenses.

For businesses to qualify for funding (private or government-based) they will need a set of financials. You will also need financials to qualify for personal credit, loans, and mortgages. I recommend QuickBooks Online for businesses, as they have several options depending on your price point, and the interface is user-friendly for beginners.

Free cloud-based accounting options are also great for sole proprietorships. Wave is fantastic for processing invoices and keeping track of your bills. Whichever software you choose, your tax season will be easier if all your financial information is stored in one place.

Report all income.

Even cash. They will find out; they always do. The best way to handle cash is to deposit it immediately into your business bank account. For inspectors who deal with cash regularly, I recommend getting a carbon receipt book to give your customers receipts—as well as to help keep accurate records of the cash received.

Credit is king in tracking.

If your home inspection company does not already accept credit/debit cards, consider getting a Square reader or accepting PayPal, Venmo, Zelle, or bill.com payments in addition to accepting cash and checks.

These apps have tracking built into them for all transactions run through the account, and they connect to all cloud-based accounting software. The flat fees for transactions are worth it for the convenience they offer your customers and the peace of mind they provide with their seamless records management. Quickbooks and Wave both offer payment options for their customers as well.

Check irs.gov.

When in doubt, refer to IRS.gov for any changes or updates for the current tax season or call 800.829.1040.

You can check the status of your refunds on the IRS website at IRS refund page.

I do recommend signing up for online access at IRS.gov, as this will give you instant access to your transcripts and other relevant tax information.