The Best Tax Planning Tips for Your Micro-Business

tax planning

You’ve seen all of those tax planning articles that the internet has to offer. You’ve found tips for small business and large businesses. What about micro-businesses? Most tax planning strategies leave micro-businesses out of the equation. As a result, a lot of micro-business owners have to figure out their strategies on their own. Thankfully, Thom Bookkeeping won’t leave your business out of the loop. As a matter of fact, we often help micro-business owners with their tax strategies. Here are a few tips that can help you get started.

Keep Things Separate

When you run a micro-business, it’s quite easy to mix your business life and your personal finances. It seems harmless at first. Maybe you paid for a business expense with your personal debit card one time because it was closer than your business debit card. Your business life is so tied to your personal life that it’s easy to muddy the waters. However, once tax season arrives, it can be tougher than you realized to separate your expenses again. Keep your business finances separate from your personal finances, and your tax planning will go much more smoothly. While you’re separating your finances, keep your business items organized. Set aside a folder to keep receipts and other tax-related items.

Budget Your Tax Time

For micro-business owners, tax planning often goes to the back burner, especially for those who take on multiple roles. Micro-businesses demand a lot from their owners. You’ve probably played the role of customer service rep, stock manager, and CEO all in the same day. When you have to handle so much, it’s easy to put aside long-term concerns like taxes. However, if you put off your planning long enough, that decision can come back to haunt you. Try to set aside specific times to deal with tax preparation. Maybe you go over your receipts every Friday afternoon, for example. Consistency in the short term will save you from a lot of stress in the long term.

Get Help With Your Tax Planning

Think that only bigger businesses can hire tax planning services? As a matter of fact, micro-businesses can get a lot from these services, too. Some services even specialize in helping micro-businesses, which means that they’ll understand exactly what you need. Consider hiring a tax planning and bookkeeping service for your business, especially if you’re better with the creative side of your business than the mathematical side.

Tax Planning With Thom Bookkeeping

Looking for tax planning help for your micro-business? Thom Bookkeeping has exactly what you need. We help micro-businesses just like yours make the most of their planning. Ready to get started? Contact us today.

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