FreshBooks Small Business Tax Guide

Simplifying Tax Season for Small Businesses with FreshBooks

Small business owners don’t enjoy tax season any more than anyone else. Preparing your accounting means you’ll have extra work to deal with. Additionally, the fear of getting an audit for making a mistake is stressful and makes the process much more unpleasant. 

However, tax season can be very enlightening. Yes, it’s extra work, but it can provide a ton of insight into your business. You can use that to make your business better and continue growing. 

Preparing for tax season means that you have to close your annual accounting and take an in-depth look into your finances. There are many things you can do to make the process a bit less daunting, though. Today, I bring you 6 helpful tips!

Additionally, I’m going to talk about FreshBooks, an amazing accounting software that’s perfect for small businesses. It offers all the features and tools you need to keep your accounting in order and eliminate some of the stress that comes with tax season. 


Disclaimer: This post may contain affiliate links, meaning we earn a small commission at no extra cost for you when you do purchase through our links.

6 Helpful Tips for Small Business Tax Season

  • Use a Digital Expense Tracker

The more you streamline your business practices, the easier it will be to keep your finances organized throughout the year. Nowadays, there’s no reason for anyone to keep storing receipts in messy folders or shoe boxes. Tax authorities accept digital copies, and there are so many useful pieces of software that will allow you to track your expenses in one place. 

A digital expense tracker is available among all the wonderful features FreshBooks offers to small businesses. It will allow you to keep track of all your business expenses and keep them organized so everything is accounted for. You will be able to categorize expenses very easily! Additionally, the auto-scanning feature allows you to take a photo of receipts to scan them, categorize them, and organize them. 

  • Keep Your Paper Records on Point

Even with advanced software such as FreshBooks that allows you to keep most of your records digital, you will still handle paper records. Such as signed contracts and agreements. These are important to organize and keep safe. I recommend you keep the number of hard copies to a minimum. In other words, keep only the paper documents you need.

Make sure you organize them in a file box that’s easy to carry so you can take them to your accountant when it’s time to prepare for taxes. It will make things a bit easier! In the meantime, keep them in a safe place and make sure they’re protected from water damage and other common risks. 

  • Take All the Tax Deductions Your Small Business Is Eligible For

Tax deductions help you save money, which is very important when you’re running a small business. Every bill counts! If you don’t take all the tax deductions your small business is eligible for, you’re essentially leaving money on the table. 

Most expenses that you make for your small business, such as office supplies, loan interest, employee meals, etc., can be deducted at the end of the year. That means you need to do your homework. Look into tax deductions and determine which ones apply to your small business. Then, take advantage of every single one of them!

  • Get a Credit Card for Business Expenses

When you’re preparing for tax season, you need to organize and automate as much of the process as you can. The less paperwork you need to handle, the more time you’ll have to dedicate to your business. For instance, business credit cards allow you to organize your business expenses very easily. 

A business credit card will automatically organize the purchases you make into categories. This makes it easier for you to track expenses. Additionally, paying for your business expenses with a credit card is a great way to build business credit. However, you have to be smart and pay the full balance on time each month. Don’t bite off more than you can chew!

  • Dedicate Time to Your Taxes Each Week

Your taxes should be a priority throughout the year, not only during tax season. Dedicating time to your taxes each week is the smartest way to go about it. It saves you time, and effort, and it allows you to minimize the risk of mistakes. Tax preparation is something you should keep on your weekly schedule. 

You don’t even have to dedicate too much time to it! 30 minutes or an hour at the end of the week will do. You just need to reconcile your books, file your receipts, plan your quarterly payments, and do everything else to stay organized throughout the year. 

Of course, keeping your taxes in check is even easier when you have tools that help you keep track of everything. Additionally, it doesn’t hurt to have the help of an expert. If tax preparation is truly beyond you, finding a mentor to get the hang of it won’t hurt. 

  • Take Advantage of FreshBooks

FreshBooks is one of the best accounting software for small businesses. It’s beautifully designed and it’s packed with tools and features that will make your job easier. Having your financials in one place will allow you to know your business inside and out. 

This insight is valuable because it will help you manage margins and cash flow, plan for the future, maintain financial health, and improve your business in many different ways. 

Another great thing about FreshBooks is that it provides automated invoicing. Essentially, it allows you to automate your billing cycle in one place. This takes a huge burden off your shoulders and keeps track of cash flow. 

FreshBooks also allows you to manage your books with the help of your team, track expenses, time, and mileage organize your proposals, manage projects, keep track of reports, and so much more. This piece of software is powerful, and consultants are available to show you the ropes and get you started. 

If you want to have full control of your accounting, automate as many processes as possible, and make tax season a bit less daunting, using FreshBooks is the best way to do that. I highly recommend it!

Leave a comment

Please note, comments must be approved before they are published


No more products available for purchase