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If you are a direct seller or small business owner like me, getting prepared for taxes can bring a lot of angst but here are some helpful Tips and Resources I have learned along the way in my journey to help take some stress out of taxes.
Tips and Resources
Hire Professional Help
When I first got into direct selling and did taxes the first time, I used a tax software program. It was okay, but not ideal and I consider myself somewhat savvy at tech and finance. However, my first full year of LuLaRoe proved to be more than I could handle come tax time because I wanted to make sure I did everything right. Hiring a good CPA (Certified Public Accountant) was necessary and completely worth every penny.
Business Expenses Tracking
You NEED some sort of system to track your business expenses. My first year of LuLaRoe, I manually tracked expenses in a spreadsheet. While that worked for the first year, it was extremely time consuming. I looked into programs that could automate this for me. I stumbled upon Shoeboxed. Shoeboxed turns all your paper and receipts into digital data. The plan I am on includes a monthly prepaid envelope that we send all of our receipts to be scanned, itemized, and returned back to us should we ever need for audit purposes. This service is AMAZING. Gone are the days of manual tracking and using spreadsheets. One of my favorite features is the email address you get for your account where you can forward email receipts to. (You know, all the Amazon orders or business lunches that email you receipts #timesaver). When my accountant needs my report, I print out my Shoeboxed EOY (End of Year) report and give that to her. Want to give it try? You can use my referral link to get a discount HERE.
If you are an inventory-based seller, I would strongly recommend some sort of inventory management system. I use an online one and can easily see what my full stock looks like. This makes EOY inventory counts must less dreadful. Contact me HERE to get some suggestions based on your business.
Come January, I start getting everything in order. I usually buy a sturdy folder or organizer like THIS and start compiling the documents I need. Most 1099s and Year End statements are provided by 1/31 and my CPA also provides me a checklist of what I need.
I give my CPA everything and then I wait…
Hopefully these tips and resources help you and give you a good start to make tax time a little less stressful. If you think I missed anything, let me know HERE.
ty and sa,