I Survived Tax Season!
Last year was my first official year as a business and I am happy to say I survived tax season! I don't know alot of small business owners so I was in the dark learning how the tax process worked for a sole proprietor of a business. I am no expert but I thought I would share a few things that were really helpful for me as I went through the process.
1. Record everything! Postage, equipment, mileage, supplies, rent and marketing are the categories I used to break expenditures up. And then of course, earnings. I just created tabs in Microsoft Excel to help me keep track of things. I recorded the date, amount spent or earned, purpose and the kept corresponding receipts in a folder. This process seemed to work really well when I got my taxes done.
2. I am a huge fan of TurboTax but this year because of the business I decided to outsource the process and I was really glad I did because within an hour it was done and I can rest assured that everything was done right. I'm not sure how I will do it next year but this was a great start!
3. As a sole proprietor your business taxes are calculated in addition to any other full time or part time jobs that you do rather than separate entities like an LLC or corporation. (This may be self explanatory but it was news to me as a first timer).
That is all I have! The process was pretty straight-forward after getting through the initial learning curve. As always, feel free to ask me any questions here.
1. Record everything! Postage, equipment, mileage, supplies, rent and marketing are the categories I used to break expenditures up. And then of course, earnings. I just created tabs in Microsoft Excel to help me keep track of things. I recorded the date, amount spent or earned, purpose and the kept corresponding receipts in a folder. This process seemed to work really well when I got my taxes done.
2. I am a huge fan of TurboTax but this year because of the business I decided to outsource the process and I was really glad I did because within an hour it was done and I can rest assured that everything was done right. I'm not sure how I will do it next year but this was a great start!
3. As a sole proprietor your business taxes are calculated in addition to any other full time or part time jobs that you do rather than separate entities like an LLC or corporation. (This may be self explanatory but it was news to me as a first timer).
That is all I have! The process was pretty straight-forward after getting through the initial learning curve. As always, feel free to ask me any questions here.
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