Well, we are nearly into December, which for those of us who run our home businesses along the calendar year (as opposed to a fiscal calendar), we will soon be sitting down to do our 2007 taxes. Whether you do your taxes yourself or work with a professional, this is a good time of year to make sure you’ve got all your records in order and your ducks in a row…
Hopefully, throughout the year you have been keeping track of your income and expenses, any estimated tax payments you have made, interest income, business loans, etc. For those of us who run our own home businesses, it can be complicated trying to figure out what is “personal” and what is business. If things are too complicated, it may be worth your while to have a check-up with an accountant or CPA to make sure that you are keeping track and doing everything you need to do to make sure your taxes will be trouble-free.
Meanwhile, get together all your income and expense records and all those documents you will need and put them in a safe and accessible place for upcoming tax time. It can be easy to get caught up in the season and shove things aside, only to find them impossible to find once January rolls around. I find it is easier to get everything ready to go by the first of December, then I can add any last minute information AND I have it all collected as tax forms, interest information, etc. starts to arrive in the mail after the holidays. Again, if you are confused or need help in compiling your tax information, now is a good time to see a professional–before they get busy and occupied with the details of the tax season at the beginning of the new year.
Also: Home Business–Taxes
Keeping Track of Business Expenses