Nobody really enjoys filing taxes. Even certified public accountants probably find the process tedious at times. But when you’re working from home, it can be an extra chore to get your taxes done simply because you are responsible for tracking all of your business accounts in addition to your personal finances (since some of these duties would normally fall to an employer to complete).
However, if you don’t want to find yourself in a mad dash to get it all done at the last-minute, there are plenty of tips and tricks that will help you to prep. Here are just a few to try so that both your personal and professional filings go a little more smoothly this year.
Tax Prep Tips for Work-at-Home Moms
This is a good idea for any business endeavor, but it’s absolutely imperative to the work-at-home mom that is juggling the many demands of children and a job (or several), often at the same time.
When it comes to organizing taxes, you’ll need to implement a filing system that allows you to quickly locate all pertinent paperwork, from invoices and payments to receipts for expenses.
You may need copies of some of these documents to include in your business tax filing, and it will be easier for your tax preparer (especially if that happens to be one of the many hats you wear personally) if you’ve got everything well in order from the get-go.
Hard copies are so passé (and messy)! With digital finance software like QuickBooks, you can easily track all of your income and expenses, scan in receipts, and other documents so that you don’t have to keep paper copies and compile spreadsheets that will make it easy to tally up all the numbers you’ll need at tax time.
Your CPA will thank you. Using QuickBooks Hosting will be a reliable option for tracking your expenses and budgeting needs. Tools such as Citrix Xendesktop can accelerate your bookkeeping work, giving your multi-user environment for accounting needs.
Consider estimated quarterly filing.
Okay, this might sound like more work. But the truth is that it will almost certainly save you time and money in the long run.
By filing quarterly, you’ll have a lot less number-crunching to do, and you won’t end up owing a huge chunk of change at the end of the fiscal year. You could even see more money back if you happen to overestimate what you owe.
Know your deductions.
As a freelancer working from home, you will be responsible for paying your taxes in their entirety. Luckily, there are tons of expenses you can write off for your business, such as a home office, supplies and equipment, and even research materials in some cases.
This will help to cut down or even negate what you owe the IRS, so it behooves you to be on top of eligible deductions.
Hire a tax pro.
While you could supplement your education with an online master of accounting, there’s really no need to go to such extreme lengths to ensure that your taxes are properly completed
. If you want to take advantage of all possible write-offs to get the best return, and you’d like to avoid raising any red flags that would lead to an audit in the process, there’s no better way than to hire someone who has the knowledge and experience to help you get your tax filing in order.
With plenty on your plate already between running a home-based business and a family home, it couldn’t hurt to have someone on your side that can take this tedious chore off your hands (and take on some of the liability, as well).