2007 Taxes: Organized - an intervew with Jessica Reagan Salzman
(www.myorganizedbiz.com) - Over at TaxGirl, you can participate in a poll about how your taxes are coming along. And if you say, “Taxes? Aren’t they due in April?” - you’ll find that you’re in good company!
Creating an organized business means that you can lovingly care for your financial health - including what’s owed to the government.
Today, I’m happy to be featuring an interview with Jessica Reagan Salzman, owner of Behind the Scenes LLC which does virtual business bookkeeping for people who are tired of being in the dark when it comes to money matters.
Jessica has also been called “the marriage saver” because of the assistance she has provided to husband/wife owned companies and the amazing difference it has made in their lives. As a home-based business owner herself, Jessica understands the unique advantages and challenges of running a business from home.
Jen: Welcome, Jessica! This has got to be the Season O’Stress for business owners. Let’s start by talking about why do you think people get so overwhelmed during tax season.
Jessica: I think most people end up overwhelmed during tax season because most people put off things that aren’t fun or enjoyable. And last time I checked, most people don’t find the process of filing taxes to be fun or enjoyable!
It’s easy to end up overwhelmed when you have a huge project hanging over your head. Especially when you are not even sure what first step to take in order to get that project done and off your plate.
Jen: That’s a really great point - something as big as taxes needs to be broken down into small, sane steps.
So, what would you say are some things that small business owners can be doing right now to get ready for April 15?
Jessica: The first thing any small business owner should do right now, if they haven’t already, is pull together all of their business’s bank and credit card statements for 2007, along with any other business financial paperwork (loan statements, unpaid bills, invoices issued to customers/clients, etc.).
Many small business owners try to tackle their business’s money matters on their own, but unless they are in the bookkeeping or accounting business, it’s usually much easier (not to mention less stressful) to have outside help!
Once they have their paperwork together in one place, they can then contact a professional for assistance. If they are using financial software like QuickBooks, it’s still very important to have the assistance of a professional to ensure that the software is producing accurate reports.
Jen: Speaking of money, what things can small business owners do to help them reduce tax preparer costs?
Jessica: The best way to reduce your tax preparation expense is to have your business’s books in the best possible shape before passing them off to the tax preparer. This is where the cost of professional bookkeeping assistance immediately pays off as a return on your investment. I’ve had some clients tell me that their tax prep bill was more than cut in half and the only change they had made was having a bookkeeper!
Jen: Great tip! Now, you run a business - how are you doing on your own tax preparation?
Jessica: That’s a great question! Because I stay on top of my own business’s books on a monthly basis, I’ve had my books pretty much ready for tax prep since my December bank statement was generated and available via online banking. Other than a few 1099s that are still trickling in, I’m almost set to pass my books off to my favorite CPA!
One of the beauties of doing my books throughout the year is that I’m always “in the know” regarding how much I should be paying in estimated taxes. It’s a great planning tool to help me grow my business each month.
Jen: Great - I guess it would pay off to copy what you do! In the big picture, what can people do to prevent their Jan-April 15th stress?
To reduce pre-tax stress, it’s helpful to have a system (customized so that it works for you!) in place throughout the course of the year. That way you do not end up with a huge project after January 1st.
If tax season causes you a great deal of overwhelm, it’s time to partner up with someone who can show you a better way so that you don’t end up repeating this pattern year after year. Most business owners are surprised to learn that there are some simple and low investment steps you can take to get a handle on your business’s money matters, quickly and easily!
Jen: Thanks so much for stopping by, Jessica! I feel ready to get my taxes ready (one small step at a time)!
Tags: bookkeeping, credit card, file, Organize, small business, stress, tax preparation, taxesRelated Stories
POSTED IN: Finances organized, Friday Feature, Systems and structure
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