Let me start by saying, I am not writing this article to give you advise on taxes or accounting, I am not certified to do that!
However, after some of the horror stories I have heard this year from some of our partners dealing with their taxes, I feel obligated to share these resources with anybody who wants to know how to have a better experience in 2020.
I have been in business for over 15 years and have never done my own taxes. But I have spent a lot of time seeking advise from professionals and reading financial books.
Must Read Every Year!
One book, I have come to depend on every year, and read every year, and require that my accountant/bookkeeper read every year, is Windfall Tax Savings Approved written by Dr. Ron Mueller.
When President Trump’s new tax code was released, Dr. Mueller had all the answers. He released a document outlining the details of the new tax code. Broke it down to explain what mattered and how it applied to small business owners.
I felt like that 54ish page document had me prepared for the coming changes, like I was ahead of the game.
Dr. Mueller releases a new updated version of his book every year. That is why you must read it every year.
Along with his book, he sends out a regular newsletter to keep you updated on all the updates throughout the year. He also does live webinars often.
Managing Your Finances
Along with being educated and having a good accountant/tax preparer, you need to keep good records.
There are quite a few accounting software options available on the market. I’ve used a couple, but have been using Freshbooks for several years now.
Not only will it make filing taxes easier, but you’ll have better records. You’ll be able to pull reports throughout the year to see how you’re doing, and better forecast throughout the year.
With Freshbooks you can handle all your accounting needs.
- Invoicing
- Expenses
- Projects
- Time Tracking
- Estimates
- Payments (auto payments included)
- Accounting Reports
- Mobile App
My bookkeeper has direct access to my Freshbooks account. She can access my records and get the information she needs to better manage my business finances.
At the end of the year, I simply print a bunch of reports and I’m ready to file my taxes.
It’s not really important what you use, as long as you’re using something. I would however recommend giving Freshbooks a try, you can start a free 30 day trial anytime.
The Wrap Up
Take it for what it’s worth. This article is simply designed to be a guide. Something to make sure you have what you need to be successful.
I do not have any advise for you. I’m not qualified to offer any on this topic.
The only thing I will say, if you have a tax horror story of your own, it can be prevented. You can make taxes easy.
You can be sure that next year you will have to pay taxes again!