in the studio: tax time

One of the most dreaded times of year for any small business owner is tax time, well that and maybe the holiday rush. I have been working to get my yearly tax documents in order this last week and may be able to take some of the dread out of the process.

photo credit: source

My biggest piece of advice would be to hire someone to help you. As a small business owner I not only design and print my products, but I also work in sales, marketing, public relations, web design, and logistics. I am used to learning new skills and it's a necessity to have a successful business. However, submitting taxes is something that can be very costly if done wrong and is definitely worth hiring a professional. This doesn't mean you have to hire a full time accountant, just someone who can help you fill out all of the tax forms correctly - and makes sure you get all your deductions!

Second, use a bookkeeping software that you understand. When I first started Bluebonnet Press I did lots of research for the best software - however, I soon realized that the "best small business software" is actually the software that I know how to use and don't have to have a degree in accounting to operate. I have found that I am much more diligent with my bookkeeping when it's a quick and easy process.

Lastly, keep your reports up to date throughout the year. Yes, this is a bit obvious, but the importance of keeping current records cannot be overstated. This will prevent you from having to go back through receipts and bank summaries to figure out your profits, expenses and inventory. Not only will this make tax time a thousand times easier, having accurate reports throughout the year will help you make informed decisions about your business.