Tax Tips from Your Bookkeeper: Keep More of What You Earn
- Cynthia
- Feb 13
- 4 min read
Tax season is nearly upon us! As a small business owner, tax season can be extremely overwhelming. Between organizing receipts, tracking deductions, and meeting deadlines, it’s easy to miss out on opportunities to save money. That’s where your bookkeeper comes in! At Lock & Ledger, we specialize in helping local businesses and property managers stay organized, save time, and save money when it comes to taxes.
Here are our top bookkeeping tips to help you navigate tax season stress-free.
This blog is for informational purposes only, it is not intended to provide tax, legal or accounting advice. You should consult with your tax, legal, and accounting advisors before engaging in any transaction.
1. Organize Your Financial Records
Accurate financial records are key for a smooth tax season, especially for small businesses in Summerfield. Staying on top of your records ensures you’re prepared for tax filings and can help you avoid costly mistakes.
How to Stay Organized:
Use bookkeeping software to track income and expenses throughout the year.
Create a system for organizing receipts—digital or physical—and sort them by categories like travel, marketing, office supplies, or other categories pertaining to your business.
Schedule a monthly check-in to review your books and reconcile accounts.
Pro tip: The more organized your records, the less time (and money) you’ll spend on tax preparation.
2. Know Your Deductions
Many small business owners miss out on valuable deductions because they don’t know what they’re eligible for. If you operate in Summerfield, other cities in North Carolina, or throughout the country, you might qualify for a range of deductions depending on your industry.
Common Deductions for Small Businesses:
Office Expenses: Whether you work from a home office or rent space, a portion of these costs may be deductible.
Business Travel: Airfare, mileage, hotels, and meals related to business trips often qualify.
Marketing Costs: Social media ads, website design, and promotional materials can all be written off.
Keeping detailed records for each expense ensures you’re audit-ready and can maximize your deductions.
Learn more about deductions here.
3. Separate Business and Personal Expenses
This is a big one! Separating business and personal expenses is one of the golden rules of effective bookkeeping. Mixing the two can lead to confusion, especially during tax season.
What to Do:
Open a dedicated business bank account and credit card.
Pay yourself a salary or transfer funds for personal use rather than paying personal expenses directly from your business account.
By keeping your finances separate, you’ll make tax preparation simpler and gain a clearer view of your business’s performance.
4. Keep Track of Quarterly Taxes
If you’re self-employed or run a small business, you’re likely required to pay estimated quarterly taxes. Missing these deadlines can result in penalties, so staying on top of them is critical.
Quarterly Tax Tips:
Use your bookkeeping records to estimate income and expenses.
Set aside a percentage of your earnings each month specifically for taxes.
Mark deadlines—January 15, April 15, June 15, and September 15—on your calendar.
By staying proactive, you can avoid surprises and keep your finances in check.
5. Leverage Tax Credits
While deductions lower your taxable income, tax credits reduce the actual amount you owe in taxes. Understanding which credits apply to your business can lead to significant savings!
Tax Credits to Explore:
Energy-Efficient Upgrades: If your office space has gone green, you may qualify for energy-efficient property credits.
Hiring Credits: Certain hiring initiatives can also help reduce your tax bill.
Research and Development (R&D) Tax Credit: If your business invests in improving processes, products, or technology, you could claim this credit, even as a small business.
Disabled Access Credit: Small businesses that improve accessibility for individuals with disabilities can receive a credit for expenditures such as ramps, doorways, or other qualifying upgrades.
Childcare Provider Credit: Businesses that offer childcare facilities or programs for employees can receive a credit for part of the costs.
Small Employer Health Insurance Credit: If you provide health insurance to your employees, you may qualify for this credit, which helps offset premiums.
Be sure to consult a tax professional to ensure you’re taking advantage of all applicable credits!
Learn more about tax credits here.
6. Plan for the Future
Taxes aren’t just about the present; they’re also an opportunity to plan for the future. Whether you’re investing in your business or planning for retirement, proactive steps can save you money down the road.
Future-Focused Strategies:
Set up retirement plans like SEP IRAs or 401(k)s to reduce taxable income while building a nest egg.
Work with a bookkeeper to project next year’s income and tax liabilities, helping you adjust strategies accordingly.
Planning ahead allows you to stay one step ahead when tax season rolls around.
7. Partner with a Professional
When it comes to taxes and bookkeeping, partnering with a professional is one of the smartest decisions you can make. At Lock & Ledger, we specialize in helping businesses in Summerfield, North Carolina, and beyond stay organized, reduce tax burdens, and plan for success. And we can help you too!
Our personalized approach ensures your records are accurate, your deductions are maximized, and your tax filings are stress-free.
Tax season doesn’t have to be stressful when you have the right tools and support. By organizing your records, understanding deductions, and planning ahead, you can keep more of what you earn.
If you need help with bookkeeping or preparing for tax filings, Lock & Ledger is here for you. Contact us today to learn how we can help your business thrive during tax season and beyond.
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