There are many great things about working online or working from
home doing internet marketing. Taxes, and tax time is NOT always one of
them. But, there are things you can do to prepare for this time of
year and alleviate some of the stress.
Since it is tax season at the time of this post I figured I would
lay down some tips and tricks for tax season, or for being prepared
when tax time comes around again.
Now, full disclosure: I am NOT a tax professional
and you should run EVERYTHING to do with your online business and
taxes by YOUR accountant or tax professional!!
One thing you can do is keep track of all your expenses and related
to your business. Costs for advertising, graphic design costs,
whatever you pay to have done or pay to assist in your business
(software, programs etc) is an expense.
I am not saying list your chair, desk, staples, pencils, and all
that as a “home office” (the IRS are really strict on the home
office part. A home office if you choose to claim it on your taxes
HAS to be JUST for your business. Meaning every book on your
bookshelf needs to be related to your business, there can be no
clothes in a closet or drawers there, no exercise bike etc.
What I am saying is that things like advertising expenses and
profit and loss reports can all be in order for tax time if you
plan ahead a bit.
If you usepayment processors such as Payza, SolidTrustPay, Paypal etc that
they have statements that they generate every month and so it
would be wise for you to print and keep a copy of these on file.
These payment processors also make it handy to keep track of your
profits!
You can print them out once a month and by tax time you will have
them ready to go. Plus printing them out every month saves you
worry about “what if my computer shits the bed on me at tax time?”
and you can’t download or print them when under a time constraint.
Some business expenses such as web hosting, domain registration etc.
may not be on these processors and may actually be paid for from
some other source such as your checking account. So it is also advisable
to keep your monthly checking account or credit card statements on file.
Now. when I say on file, It doesn’t have to be on paper at your house.With
all of the identity theft out there it never hurts to have your stuff
locked away securely. If you are comfortable with a locking file cabinet
at home, great. It can be on a secure zip drive or other secure digital
storage device.
One other non tax related tip- start a master password list. Either
in a book, or on a secure digital storage device. Because as long
as you have the master password list you can do business from
anywhere. Plus, heaven forbid, something were to happen to you, there
is a record of your business transactions and passwords for your successor,
(wife, business partner etc.) to have access to and take over the business,
or properly discharge the business on your behalf.
That’s all I have for you for now.
Until we speak again, remember, Don’t Be Afraid, Live Free!
-Seely “The Lion” Clark IV
Skype: seelyc4
