Contrary to popular belief, tax season is a year-round experience. Although the deadline is April 15th for most people (3/15 if you have a partnership or Scorp), the IRS and the state that you operate in actually expects you to make quarterly estimated tax payments throughout the year. Here is a helpful link on when the estimated tax payments are due. In general, we typically advise our clients to set aside between 25 – 30% of your profit for your estimated tax payments. Note, that just because you made estimated tax payments does not mean you will not owe when it comes time to file your taxes. What we hope is that with accurate bookkeeping and tax planning is that the estimated tax payments are as close as possible so that there are no surprises when it comes time to file. Now that we have got that baseline out the way, here are some helpful tips and things to consider as you prepare for the upcoming tax season.
3. Prepare 1099- NEC for Contractors
4. Request an extension if you need one and start planning for next year
While I do not offer tax preparation services, I would love to help you get your books in order for 2023. Bookkeeping is not just a means to getting your taxes done, but it also helps you as the business owner have a pulse on how your business is performing to inform your decision making. Not to mention, if you are currently feeling the overwhelm that comes with filing your taxes – having accurate, up to date books throughout the year will hopefully put your mind at ease next time around. If you are looking to take your business to the next level in 2023, I would love to work with you. Fill out the contact form on my site to learn more about my services and how we can work together.