‘Tis the Season for Taxes – Top Tips for Getting Organized
For many individuals and small businesses, the most feared time of the year is tax season. Forget the holiday rush and the new year influx—tax season is what really turns up the heat on beauty pros and kicks stress levels into another gear.
Not only are the stakes high, but the entire process can be tedious, uninteresting, and complex. Unless you’re one of the very few who find joy in doing taxes, you’re undoubtedly dreading the approaching deadlines.
While the anxiety and lack of interest that accompany tax season are hard to dispel entirely, there are some steps that can be taken to alleviate the pressure and make the process a bit more palatable. Getting organized ahead of time is one of those steps.
Key Takeaways: Being organized for tax season reduces stress, simplifies taxes, and can even save you money. There are several small steps you can take to prepare for tax season and set your beauty biz up for success.
Getting Your Beauty Biz Organized for Tax Season
Work with a Tax Pro
Why do people come to you for your beauty services?
You may have a magnetic personality, make friends with everyone you meet, and create a warm, welcoming environment where people feel drawn to your salon, but none of those wonderful characteristics are compelling enough if you aren’t a skilled beauty pro. People come to you because you have put time, effort, and hard work into perfecting your craft and becoming an expert in your field.
The same is true of taxes. No matter how intelligent and capable you may be, it’s practically impossible to be a thriving beauty pro and a tax expert. There’s no shame in prioritizing your business and the things in your life that matter (like family and loved ones) over your taxes.
By hiring a tax pro to handle your tax season necessities, you can reduce your stress, file your taxes with confidence, and even benefit from maximum deductions. Just remember, accountants get incredibly busy during tax season, so it’s best to find a pro to work with ahead of time.
Track Your Deductions
There are few things more stressful than the last-minute scramble to organize tax documents, catalog expenses, and scout receipts for deductions. If you want this tax season to go smoothly, be sure to track your deductions consistently and organize them early.
Deductions are important because they reduce your reported income, effectively lowering the taxes you owe the government. Should you decide to work with a tax pro, they will be able to advise you on everything that qualifies for deduction, but the following categories are a good place to start.
- Shop expenses that include things like rent and utilities.
- Digital and physical tools like shears, clippers, hair dyes, booking software, marketing materials, and more.
- Products and supplies, including printer paper, cleaning supplies, computers, retail products, and furniture.
- Certifications, licenses, and educational expenses.
- Cosmetology liability insurance is typically a tax write-off, as well, so be sure to mention this to your tax pro!
Don’t Forget Tax Season Deadlines
Looming tax season deadlines may be enough to send shivers down your spine, but that doesn’t mean you can ignore or overlook them. It’s quite the opposite—you should familiarize yourself with the deadlines and keep them in mind as you prepare for taxes.
By remembering deadlines, you ensure that no important dates pass you by. Forgetting to submit essential information—either to your tax pro or the government—can cause chaos, stress, and even penalties and fees. On the other hand, staying on top of deadlines can help your tax season go smoothly, thanks to timely preparation and organization.
Start Early
Those deadlines we just talked about? They sneak up quickly. If you blink, you could be looking tax season milestones right in the eye or, worse, be facing late penalties.
To ensure that these harmful possibilities don’t become a reality, start getting organized early. The more preemptive you are, the more flexibility you buy yourself for when those inevitable little snags pop up. You also give your tax pro an opportunity to find and maximize all possible deductions, giving your beauty biz a nice little tax break.
Starting early on tax season organization may seem excessive or be the last thing you want to think about, but you will be thanking yourself when the deadlines draw near.
Tax season can be a nightmare for beauty pros, but it doesn’t have to be. Even if you can’t stand the process, some simple preparation and organization can revolutionize your experience. Implement these tactics to enjoy the most stress-free tax season yet.
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