It’s Crunch Time! (Final Part)
How to Remove the “Crunch” Now, for Smooth Sailing Next Year!
CMN’s 2017 Tax Filing Handbook Overview:
3-3. Tips and Tricks on How to Get Started NOW… and Sailing Smoothly Next Year
Preparing to file 2017 taxes
If you’ve read them, you’ve seen first hand how much documentation is needed to smooth the process of preparing your taxes.
How can you ensure that you don’t wind up waiting until the last minute next year?
Start organizing your 2017 tax file TODAY!
… Yes, today!
Reflection & Thinking about next year’s Tax Day
Beginning your preparation now for Tax Day 2018 will make your life so much simpler.
Here is a non-exhaustive list of things you can do now and throughout the year to set yourself up for success:
- Business banking – set up a business checking and savings account to keep your business finances separate from your personal finances.
- If you manage credit responsibly, consider getting a business credit card to put all your spendings on it. Stay tuned for a separate post on credit cards best suited for musicians because it is going to save you A LOT of troubles that you may not have thought of.
- Begin your new tax file by making a list of things that worked and did not work well with your 2016 tax file.
- Set up your new tax file, complete with a way to keep receipts categorized. (Don’t forget to make your tax file visually appealing, for a little motivation!)
- File receipts into their respective categories as soon as you receive them, or at least on a weekly basis.
- Check out Expensify if you prefer the eco-friendly approach of electronic receipts. The app allows you to link your debit/card cards and will automatically import purchase data and categorize the purchases for you. (How awesome is that?!)
- Expensify also allows you to integrate data from your account with QuickBooks.
- Create a new cloud-based mileage log and commit to updating it at least once per month.
- Expensify offers mileage tracking, too.
- Create a cloud-based income and expense log – this should be as detailed as possible, containing individual line items as opposed to the less detailed store transaction log that would be on your bank statement.
- Google Sheets is a good manual tracking option!
That’s It You Guys! Congratulations on finishing the series and smoothing out your tax filing!
Congratulations on your filing!
** Facebook Page (click here): We regularly share great resources, articles, and helpful tips for your success in a musical life!
** Join the CMN Tribe right now (click here): Connect with similar minds in the CM world so you’re not alone in it !