Nothing like a good accountant to set clients up for success by sending them a Client Organizer packet! This tax season may be a real head spin with all of the pandemic federal stimulus money that went out. Some money that was sent as a grant (like the PPP loan if you applied and got it “forgiven”), and some money that was sent as an advance (like the Child Tax Credit that is simply an advance of the credit you were getting before…it’s not free money and you may need to pay it back depending on how your 2021 income/expenses balanced out).
A few tax tips for this year:
Pat Yourself On The Back:
First of all, if you did something different than you did last year, like if you stayed up on your bookkeeping so that issuing 1099s and W2s is a breeze, then do pat yourself on the back for that accomplishment!Note Which Expenses You Aren’t Using:
There are some subscriptions you may have forgotten about, and can cancel this year. Make note of them, and carve time out in your day to pursue their logins, and cancel. Or, revive use of a good thing if you forgot about it!Use A Bookkeeping Software:
If you haven’t switched to Quickbooks, Waveapps, or another bookkeeping software yet, now is the time. We saw in the pandemic times, when applying for loans or grants, quickly issuing reports for payroll and expenses was imperative to getting that government money. Tin Shingle does offer a fancy Excel spreadsheet for freelancers and business owners who haven’t stepped into software yet, if you prefer living within the lines of Excel. But remember, the dynamic effects of Quickbooks are really special and time-saving.Use Quickbook’s Payroll Feature:
One of the best decisions I ever made. The Quickbooks Payroll Feature can do all of your federal and state filing for you if you pay the top tier. You can also issue a paycheck whenever you want for no additional cost. Other payroll services may charge you $90 or more per check. Ouch! And no. That is so old school.Pandemic Money:
Track it. All of those stimulus payments, rental assistance, everything. Put it into the spreadsheet that you give to your accountant.Hire An Accountant:
Could be very good for you, rather than going in circles with the changing rules of the IRS. However, if you do do your own taxes, hats off to you! That is major.2020 vs 2021 vs 2022:
Go easy on yourself if you mis-state the year. So many people have been wishing everyone a Happy 2020. These pandemic years have blurred together! If you think you didn’t pay a vendor this year for 1099 income, do a double check in your books, as it may have indeed happened in 2021 and not 2020.
Members of Tin Shingle get all of our templates for free. You can buy the Finances template separate, and have lifetime access to updates when we release them.
