As independent professionals, you get the freedom and the responsibility that comes with being your own boss. You set your own hours, design your own client experience, and you alone are responsible for your finances. With so much on your plate, adding taxes to your to-do list might seem overwhelming. But, with a little preparation, tax season doesn’t have to be something you dread every year. We’ve rounded up some helpful articles to make the process easier.
KEEP BETTER RECORDS
This article from IRS.gov lists the types of records you should keep throughout the year to make sure you are prepared when April rolls around.
- For example, you should have a copy of all business related receipts, your 1099-MISC form, and proof of any business related travel, like plane tickets.
- It’s especially important for stylists and barbers to keep track of information about their assets. Assets can include things like salon chairs and waiting room furniture that depreciate in value over time.
- In order to properly file information about your assets, you’ll need information about when and where it was purchased, the cost of any improvements, and how you use the asset.
- Read more here.
WRITE OFF THOSE EXPENSES!
As a small business owner, you are entitled to tax deductions based on your business expenses for the year. To reduce the amount of taxes you owe, make sure you take advantage of every deduction you deserve.
- You can write-off major expenses like professional licenses or workshops, and you can write off small everyday materials like scissors and cotton balls. For a longer list of eligible expenses, check out this article.
- Do you rent a booth? That’s a deduction too!
- Do you rent a suite? This article breaks down the dos and don’ts of suite rental tax deductions.
- If you are unsure whether or not something is deductible, check out this article about IRS regulations.
Looking for tools to help you run your business? Try StyleSeat here.
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