It’s January! While most people are recovering from a busy holiday season, it marks the beginning of a dreaded, stressful part of the year for many small businesses – tax season.
If you’re a photographer or small business owner struggling with how to go about filing and paying your business taxes, I’ve put together some helpful tips and links to help you along the way and make this a much less painful process.
- Keep your recordkeeping up to date. Enter your checks and receipts into an accounting system on a regular basis. Making this a part of your normal weekly and monthly workflow schedule avoids having to sort through a shoe box stuffed with receipts of every purchase you’ve made for the last 12 months.
- Keep supporting documentation. Keep all of the invoices and receipts to back up the income and expenses that will be on your tax return. If a receipt doesn’t clearly state what it is that was purchased, write a description on it.
- Have a well organized filing system. There will come a time when you’ll need to find an invoice from a purchase made months ago, whether it’s because you need to look something up as you fill out your tax return or you need to check to see if a vendor’s price has gone up. Having your paperwork organized alphabetically or chronologically will make things much easier to find and save a lot of time.
The following websites have a lot of helpful information for small businesses.
The IRS’s website has a wealth of information to help small businesses file their taxes. Their Small Business and Self-Employed Tax Center has links to forms and publications and lists of eligible business expenses, among other things.
I hope this is useful to you and will help you get through tax season with your sanity intact. Have a great 2012!