If you’re among the millions of small-business owners who delayed filing their 2020 U.S. taxes to Oct. 15, (you know who you are!), that extended deadline is just around the corner. Even worse, think about this sobering fact: Your 2021 taxes are due in just six months. Worry not. We talked with experts for tips aimed at helping you meet that deadline. “This is your opportunity to take action on the words you mumble under your breath, and implement good habits year-round,” says Jaclyn Strauss, CPA.
Update your accounting software daily. Yes, daily, says Strauss. Most business advice suggests weekly or—for smaller businesses—monthly, but approaching accounting like a daily email check means that you’ll itemize transactions in a matter of minutes, because you’ll remember the transactions offhand. Easy-peasy. While you’re in QuickBooks, Xero, or whatever program you use, “also check your profit-and-loss statement and any unpaid invoices,” says Strauss.