It may feel like all you want to do is get through this tax season so you can put everything out of your head for twelve months and concentrate on other aspects of building and operating your home business. But, this may be the perfect time to re-evaluate your record-keeping, adjust self-employment tax payments, and take care of other details to make sure your home business is in good shape for the coming tax year.
If you ordinarily do your own taxes, you might want to consider consulting with an accountant or tax preparation professional (or financial planner) regarding setting up your business systems more efficiently regarding taxes. If you already work with a professional on your business and personal taxes, take the time to talk over what you see happening for your home business in the coming year and evaluate whether or not you need to make changes to your withholding, estimated tax payments or other issues of consideration.
If you are considering making any purchases for your home business, this could definitely affect your taxes for 2007—equipment, supplies, memberships, etc. may all be considered business expenses and it might take some planning to make the most of these purchases in terms of your tax liability. Additionally, if you expect to increase or decrease your business income in the coming year, you may need to make adjustments to your tax planning too.
There are not very many of us who actually enjoy working on our taxes. It stands to reason that we would rather just do the minimum, take care of what we need to for the time being, and be done with it. But, making a projection and plan for the coming year in our home business and planning for any tax changes just makes good business sense.
See Also: Keeping Track of Business Expenses and The Basics of Tracking Mileage