Beauty and The Tax! 5 Tips to help make tax season a breeze
TAX SEASON 2021 IS HERE AND IT IS SAFE TO SAY 2020 WAS SOMETHING ELSE.
MY JOB IS TO MAKE SURE THAT YOU ARE PREPARED DURING AND BEYOND TAX SEASON. HERE ARE MY TOP FIVE TIPS TO HELP PREPARE BEAUTY INDUSTRY PROFESSIONALS FOR TAX SEASON AND FOR BETTER BUSINESS.
We all know that it is one absolute truth about tax season every year, and that truth is that it comes rather you are prepared for it or not. Lets not have the next tax season be like any of the past seasons, by implementing these five tips to help ease some of the tax season stress and anxiety.
- Be organized!!! Yes this seems like a no brainer, but what does being organized actually mean in regards to your taxes? Well, as industry professionals, you want to maximize your tax benefit and decrease your tax liability. This can happen by you having your income and expenses organized. You should have a profit and loss statement at the end of each year that lets you know how much income you made as well as how much money you spent on expenses.
- Know the deadlines!!! Its not enough to know that you need things to be done. You have to know when things are due and how much time you have to prepare. A few important deadlines to know are: Tax season dates-
partnership and corporation tax returns are typically due March 15 and most LLC and individual returns are due April 15. 4th quarter taxes are due January 15, 1st quarter taxes are due April 15, 2nd quarter taxes are due June 15, and 3rd quarter taxes are due September 15. We all know dates can change (federal holidays or even pandemics but these are the basis)
- Have a system!!! When it comes to working in the beauty industry rather it is as a barber, hair stylist, make up artist, esthetician, lash technician, tattoo artist, nail tech, or product distributor, you have to have a system in place for your business. Set aside time each week or at the very least each month to handle your business. If you follow your system each week or month, you wont have to worry about doing a whole year's worth of work at the end of the year. An example of a system to put into place would be to pull your reports from your POS system or Scheduling system from the previous week and on Sunday go through your reports.
- Document, document, document!!! If you do something that will benefit your business or even hurt your business. Keep the receipt or invoice. By law you are required to keep all documents for three to five years. This goes for all business documents. You want to keep everything in a safe and secure place and be sure to have it in an easy to get to location.
- Go to a professional !!! There are times when you can do your taxes yourself, but when it comes to adding in additional deductions and business or self-employment factors, you want to make sure that you are dealing with someone that knows what they are doing and have your best interest in mind. Steer away from "tax season" only businesses those are those companies that are only open during tax season and no where to be found after April. Also you want to make sure your preparer is up to date with the tax codes and IRS requirements. This is for your benefit to ensure you get the maximum tax benefit.
These are my top 5 tips for tax season, I hope you use these tips to help ease some of the tax season tension. If you need any business or tax assistance, feel free to book a power call with me.