Join our Waitlist for Expert Advice!

4 Ways to Plan Ahead For Tax Season Next Year Now is the best time to get organized and save yourself headaches in 2015.

By Greg Jones

Opinions expressed by Entrepreneur contributors are their own.

Tax season is finally coming to an end, and for many small business owners, it's a major relief. For some, stress levels have skyrocketed as employers scrambled for misplaced receipts and documents, dodged audits and attempted to claim overlooked deductions. While many are anxious to turn the page on tax season, now is actually the best time for employers to correct bad habits and get organized so next year's returns aren't as painful.

Here are four bookkeeping tips that entrepreneurs should make a habit of now to get their businesses in good shape for the next financial year:

Plan expenses for 12 months. Business owners should plan fixed expenses year round, not just on a monthly basis. It's important to take seasonality into account and other potential downturns to ensure that your minimum expenses are covered. This may mean saving more money during the business's peak sales months to cover times where sales see a drop. Knowing the fixed business expenses will provide a clear understanding of the business's future and how to appropriately plan for taxes.

Track expenses daily. The days of manually tracking expenses are over, and there are multiple technologies that allow for tracking 24 hours a day and budget planning months one to two months out. So take advantage of the financial tracking tools available on a daily basis to keep you informed and save you time. Maximizing these tools can help give you a near real-time idea of how your money is spent and the records to prove it.

Set aside money for taxes. Meet at least twice a year with a CPA -- once in May and once in October -- to get a sense for what your business's taxes will look like for the coming year. Understanding how your financial picture is evolving can help you keep pace with how your business is changing and how much you'll need to cover what you'll owe.

Planning for emergencies. It's always important to set money aside for any major, unexpected expenses, such as losing a major client, economic downturns and other crises. Think long term and stay abreast of economic conditions to predict how your business might be impacted.
How much should be saved? This depends on the minimum expenses necessary for business survival. In general, however, set aside at least six months of expenses.
What if I cannot afford to save any extra money right now? Reach out to a financial institution and have line of credit set up so that if the unexpected does happen, money is available to keep the business afloat.

Greg Jones is the founder and chairman of BookKeeping Express, a national franchise that provides small and medium-sized businesses with a full range of bookkeeping, management, accounting and financial reporting services traditionally only reserved for Fortune 5000 companies. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Money & Finance

The Government Is Forcing Business Owners to Share Personal Data or Get Fined $10,000 — So Why Don't More People Know About It?

The Treasury Department wants to know who owns your business, and the smaller your business, the more attention you should pay.

Money & Finance

Customers Have a Favorite Payment Method — But 30% of Businesses Don't Accept It. Are You Driving Business Away?

This article examines the surprising gap between what consumers want in payment options and what small businesses currently offer. It also provides strategies for small business owners looking to adapt to these preferences and enhance customer loyalty.

Leadership

Could We Have The First Native American Woman Governor? DEI Expert Weighs In On What Allyship Should Look Like If History Is Made.

We can all learn more about what it means to be a better ally for those who are the "firsts" in their space. Here are three strategies around allyship this DEI expert recommends to her diversity, equity and inclusion (DEI) consultancy clients.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

'Additional Human Touch': Starbucks Has a Turnaround Plan That Includes Buying 200,000 Sharpies. Here's Why.

Faced with declining sales, Starbucks has a comeback plan that involves several changes to stores and menus. Here's a look at the changes coming to your store.