This post is sponsored by TurboTax. All thoughts and opinions are my own.
Being self employed is SUCH a blessing. It’s changed my life, given me opportunities and the ability to create a life and schedule of my choosing.
In the beginning, I wouldn’t know what the heck to do during tax time. I’d wait until the end of the year and scramble to figure it out.
For me, there are a few things I learned the hard way and I hope to share some of them with you, no matter what stage of business you are in. Please keep in mind I am not a CPA- so this shouldn’t over rule the advice of a professional if you’re working with one.
#1) TRACK YOUR INCOME AND EXPENSES
I literally use a spreadsheet. Nothing fancy- it’s in google docs. I track what came in and what went out, so that way I know where I’m at throughout the year. It also helps me to make educated decisions on where I’m investing back into my business and where I need to step back a bit. I use a spreadsheet, but there are also great tools available to help you with this. QuickBooks Self-Employed is an accounting solution that makes it easy to manage your finances in one place. It can help you track your income and expenses, track your mileage, capture receipts and more, so that you have easy access to the documents and information you need at tax time.
#2) MAKE ESTIMATED PAYMENTS
Here’s the one downfall to being an entrepreneur- nobody is taking taxes out of your paycheck. So you’re responsible for your own taxes when tax time comes. By tracking my income monthly in the spreadsheet, I can go through and make estimated tax payments each month. It’s not a perfect science but after getting huge tax bills it sure makes it easier when tax time comes. I submit my estimated tax payments straight through the government website and it’s super easy. When you’re self-employed, keep in mind that you should be filing your estimated tax payments every quarter.
#3) USE A TAX PREP SOFTWARE
This takes the stress and headache out of filing your taxes. I personally prefer TurboTax Self-Employed. It’s quick, it’s easy to file online and it walks you through deductions that are specific to your industry, so you can be confident you aren’t overpaying or missing anything! I also like that it handles the tax prep process, right from the comfort of your home. If you have questions along the way, you can use TurboTax Live Self-Employed and click to connect with real tax experts who can give you unlimited advice and answers, on demand, all year round!
Well, there ya have it! I hope this helps make your tax season a little easier and brighter this year 🙂