Leaders, it is so important that we have a knowledgeable registered tax return preparer who keeps abreast of the changing laws (e.g., Salt Agreement, Qualified Business Income, 2106 Changes, Moving Expenses, changes, Personal expenses changes, etc.). What helped me tremendously these past two years is Xero Software (this is not an ad). The first year using the software, I hired a CPA to set it up and manage it quarterly. And this year, she trained me on how to use it. It makes it easier to categorize my finances according to tax laws. Simple right? I know you all are probably far more advanced than me.
Here is how I keep things organized.
- A Physical File Folder labeled by each month (with monthly bank statements, PayPal statements, cash spreadsheet and receipts printed).
- My scanned receipts in my myEcon CashFlow Manager App along with mileage. This helps in the event that my hard copy receipts that fade and for additional electronic documentation.
- Xero Software to connect all applicable accounts, including PayPal (not as user friendly as bank accounts). beginning this year, I reconcile weekly instead of quarterly.
Leadership is not a joke! However, tax season doesn’t have to be stressful. It just requires us to be organized all year long with systems in place!
What other tips do you have leaders? I’m sure you have some awesome ones!