Cut your business stress by simplifying tax prep and financial accounting

It’s October! Are your financial records in order so you will be ready when tax time arrives? It will be here sooner than you’d like.

You’re likely to encounter tax problems if you assume your DIY tax/financial software will handle everything correctly. It won’t, as I know, because with my solopreneur business, I thought I didn’t need professional help.

I got stumped and then stung with paying extra a year later. I’ve used a tax advisor and CPA ever since. My tax problems disappeared.

You can’t simplify your tax prep unless you have an excellent financial accounting system keeping track of everything. There are many fantastic choices, or you can hire a bookkeeper. Your tax advisor needs comprehensive and accurate information to give you sound tax advice.

Maintaining good financial accounting practices helps simplify your taxes. You should take a salary as the owner. Invest in your business to grow it.

Maintain good business credit, as having insurance is a necessity, and you may need a loan in the future. Keep your invoicing up to date, as it’s essential for maintaining a healthy cash flow. Monitor your finances with special attention to ROI and expenditures.

There are at least two good reasons to use a tax advisor. A tax advisor provides year-round advice that adjusts for any business changes. They supply a specific ongoing tax strategy for your business to navigate the complex tax code successfully.

Author: Kris Keppeler, a curious writer who finds technology fascinating. Follow her on X (Twitter) @KrisNarrates, on Medium.com @kriskeppeler, and LinkedIn.