Tax Season Solutions for the Self-Employed: Handle it With Ease
Nobody loves taxes, except maybe your CPA. For now, they’re just something we all have to live with. Until we figure out how to run a government with only enthusiastic volunteers (which sounds a lot scarier the more we think about it), tax season is an annual ritual of life. It can often be a bit more stressful for the self-employed than for salaried employees, but we’re in the business of making it simpler with our tax season solutions.
Quarterly Filing: Different, but not Harder
One of the main considerations that self-employed contractors and small business owners have is that tax time doesn’t just come once a year. The IRS requires you to file estimated payments every quarter, in addition to your annual return. This is less daunting than it seems.
As the makers of TurboTax software point out, it mostly just requires a change in mindset. By spreading out your tax responsibilities throughout the year, you might even find it easier to manage your money. It’s also less stressful than panicking on the night of April 14th. Simple tax season solutions can help keep everything in order.
The Role of Bookkeeping in Deductions
Another essential element in dealing with your taxes as a self-employed individual is knowing precisely how you are employed. It can make a big difference whether you’re set up as a 1099 contractor, or as a sole proprietor, or as the owner of a corporation.
However you’re established, there are deductions and benefits you’ll enjoy that aren’t available to salaried employees. Most consumer accounting software will take into consideration your legal status and help you maximize your deductions accordingly. As TurboTax reminds us, though, “keep in mind they require meticulous bookkeeping and receipt filing to satisfy IRS rules.”
SyncLedgers‘ tax season solutions help our small business and self-employed clients by making this part much easier. Our transaction processing service comes in handy because we organize all your scanned-in receipts and invoices as they come in. Normally we do that to prepare the ledgers and statements you need to run your business day-to-day. When it’s time to file your annual return, though, they’re already in order and itemized for proving your deductions. We don’t do the actual filing, but we work closely with you and your CPA. We make it simple to fill out the IRS forms. Contact us today so you’ll never have to worry about that pile of paperwork again!