How do you lower your stress during one of the most stressful times of the year?
It’s time to navigate the barrage of questions from your accountants, searching for information about exemptions, compliance, and things entirely forgotten. As tax season rolls around again, most business owners experience a wave of stress that’s nearly unavoidable. It’s natural because we’re only human, after all.
Retailers have a unique set of concerns when tax season begins. Thankfully, they have taken care of the most critical issues, like reconciliation, payroll, and invoices. But these are merely data points gathered. The stressful tax-related issues facing retailers are growth, geography, and automation (when it doesn’t work correctly). These call for a knowledgeable team of accountants.
How to Make Tax Season Less Stressful
Filing corporate taxes requires a lot of time and energy. Each issue that arises can have a cascading effect that causes more commotion—leading to more stress. It’s inevitable, yet you can alleviate or avoid much of it by incorporating some of the following tips into your tax routine.
- File for an Extension
Deadlines for filing your business and personal taxes can easily be extended. This will give you more time to gather data and separate personal expenses from the business. If you owe or believe you owe taxes, then make an estimated payment. These will buy you enough time to get your financial picture into place.
- Follow a Checklist
Few things are as gratifying as checking boxes, knowing that each task is completed and you can move on to the next. Whether you create a digital one or pen and paper, a checklist provides you with the order of importance, accountability, and organization.
- Review Last Year’s P & L
Before the accountant comes back with your audited numbers, take a look at last year’s P & L to get an idea of what you’re looking for in growth, sustainability, and other essential factors that affect your business from the ground up.
- Stick with a Professional Tax Preparer
You may be really good at keeping books and understanding your deductions, depreciation, and forms to file. But having a trusted professional on your side will help you navigate many of the challenges businesses face when filing taxes. They can also find tax savings you had no idea about. They’re worth the fees.
- Spread out Gathering Data
Start thinking about your taxes as points of data and less about a significant expense. And gathering data is better when done consistently and frequently. Set a schedule to gather data, and you’ll have fewer mistakes.
- Secure a Line of Credit
If you have a sizable tax bill coming, securing a credit line will help you weather the financial storm. This will ease your mind and take care of an expensive bill.
- Exercise
Don’t forget to take care of yourself. Go for regular walks and get some vigorous exercise several times a week.
- Reach out to Your Network
These are unique times for any business owner. Legislation passed during the pandemic has a lot of hoops to jump through. See if someone in your network is having the same issues.
- Find a Mentor / Be a Mentor
If you’re looking to grow your business, a mentor becomes one of your most valuable assets. They can ease your mind about these annual expenses and teach you to avoid costly mistakes. Or, being a mentor will make you feel better by simply helping someone else through your extensive experience.
- Look into the Future / Forecasting
The past two years have been significant. The ups and downs of the pandemic and lock-downs have caused a strain on all of us. Stay positive and look at all the great things that will happen next year.
Reducing stress in your life will make you feel better and maintain a positive attitude. This becomes infectious at work and at home.