12: Make Tax Time Easier with These Planning and Deduction Tips

Tax time can make business owners feel stressed, uncertain, and overwhelmed. If you’re feeling this way, you are definitely not alone! Taxes are very complicated, but I promise if you do something wrong you will not get arrested (unless you willingly commit fraud, but I don’t think you are!). In this episode, I’m sharing how you can make tax season easier for yourself next year by developing good habits and things to look out for throughout the year.

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Some key takeaways on how to make tax season easy next year are:

  • If you have a profit, you will be taxed on that income. Over the next year, plan on paying taxes. Don’t sabotage yourself by spending all your profit on more “expenses” so you’re reporting a lower income.

  • Every single month, transfer a percentage of your profits to a separate bank account for taxes. This can be a personal or business bank account. Then, every quarter, pay your estimated state and federal taxes from this account. This way you won’t owe a massive amount of money or penalties come April.

  • There are some ways you can save money on your taxes. Utilize the home office deduction, mileage deduction, cell phone use, or contributions to a Traditional or Roth IRA account. All these deductions require proper record keeping, so make sure your books and tracking systems are organized!

I’m Sarah Young - a CPA, Virtual CFO, and the Owner of Young + Co! I have over a decade of experience in helping entrepreneurs scale their businesses and build wealth at the 6- and 7-figure levels, and I started the Profit + Prosper podcast to help you do the same. Profit + Prosper is a business finance podcast created to help entrepreneurs build their wealth in a way that’s fun and empowering. This is NOT a boring numbers podcast - I will share tactical tips to increase your profit so you can truly prosper in your business and in life. I hope you’ll subscribe so we can Profit + Prosper together!