Tax season may be over, but your responsibilities haven’t ended just yet.

Tax season is finally behind us, and while it's tempting to breathe a sigh of relief and forget about taxes for the next several months, savvy business owners know that now is the perfect time to take advantage of post-tax season opportunities. As a business owner, staying on top of your taxes throughout the year not only helps reduce the stress and workload that comes with filing, but also ensures that you remain compliant and can maximize potential savings. In this blog post, we will discuss five important things you should do after tax season to keep your business finances in order and maintain a proactive approach to taxes, making the process a priority 365 days a year.

1. Use the right business cloud based accounting software.

One of the best ways to stay on top of your taxes and ensure that your business remains financially organized is to invest in the right cloud accounting software. By investing in accounting software, you can save both time and resources while avoiding the stress of untracked expenses and missing documents.

There are several benefits to using cloud based accounting software

• Real-time financial information: You can access your financial data in real-time, enabling you to make well-informed decisions about your business.

• Automation: Many cloud accounting platforms offer automation features that can significantly reduce the time spent on data entry. This not only streamlines your bookkeeping process but also minimizes the risk of errors.

• Integration with other business tools: One of the key advantages of cloud accounting software is its ability to integrate with other business applications, such as point-of-sale systems, payroll solutions, and invoicing platforms. This seamless integration simplifies data management and ensures consistency across your entire business ecosystem.

• Enhanced security: Cloud accounting platforms typically provide a higher level of security compared to traditional desktop-based solutions. Your financial data is stored on secure servers, with multiple layers of encryption and protection.

• Easy collaboration: With cloud accounting software, you can provide access to your financial data to multiple users, such as your accountant or other team members.

2. Track your spending and have regular budget check-ins.

Aim to track all your spending throughout the year so that none of your fixed and variable expenses are hard to pin down once tax season rolls around. By tracking all your spending throughout the year, you'll be better equipped to manage your cash flow, identify potential savings opportunities, and avoid unpleasant surprises when tax season arrives. Implementing a consistent expense tracking system can help you avoid fines, capitalize on available deductions, and maintain a clear understanding of your company's financial health.

Additional benefits include:

• Improved cash flow management: Tracking your expenses allows you to identify patterns in your spending and make informed decisions to optimize cash flow. Regular budget check-ins help you stay on top of your financial goals and make adjustments as needed to ensure your business remains financially stable.

• Enhanced tax planning: By diligently monitoring your expenses, you'll be able to identify potential tax deductions and credits throughout the year. This proactive approach to tax planning can lead to significant savings and help you avoid missed opportunities when filing your taxes.

• Better financial discipline: Implementing a system for tracking expenses and conducting budget check-ins can instill a sense of financial discipline within your organization. This structured approach to financial management fosters a culture of accountability and encourages responsible spending habits.

3. Keep important deadlines top of mind.

Regularly scheduling expense check-ins, monitoring expenses, and organizing critical dates greatly contributes to your business's financial success. A well-structured calendar that includes all essential financial deadlines promotes organization and minimizes the chance of missing important dates. This organization also facilitates efficient resource allocation and task delegation within your team.

Being organized and conscious of crucial dates ensures prompt tax filings and payments, which helps to avoid fines, penalties, and potential harm to your business's reputation. In essence, maintaining organization in financial matters supports a thriving and successful business.

Tips for Keeping Deadlines Top of Mind:

• Create a comprehensive financial calendar: Include all relevant deadlines, such as tax filing dates, estimated tax payments, and payroll tax deposits. Also, schedule monthly or quarterly expense check-ins to review your financial progress and make necessary adjustments.

• Set reminders: Use digital tools like calendar apps, project management software, or reminder notifications to alert you of upcoming deadlines and check-ins.

• Delegate tasks: Assign team members specific responsibilities related to deadlines, ensuring that everyone is aware of their role in meeting these crucial dates.

• Consult with professionals: Work with a tax professional or financial advisor to ensure you're aware of all relevant deadlines and to receive guidance on meeting them in a timely manner.

4. Separate personal and business finances.

Keeping the corporate veil intact is essential for business management, as it simplifies tracking your business's expenditures and revenues while measuring growth. It's also a legal requirement o business ownership. Separating personal and business finances is not only vital for maintaining accurate records, but it also offers legal protection, safeguarding your personal assets and limiting liability in case of business debts or legal disputes.

Separating your finances also helps streamline tax preparation, as you'll have a clear record of deductible business expenses without having to sift through personal transactions. This not only saves time but also reduces the risk of overlooking potential deductions or making errors on your tax return.

Tips for Separating Personal and Business Finances:

• Open a separate business bank account: This is crucial for keeping business transactions separate from personal ones. Make sure to use this account exclusively for business-related deposits and expenses. This same reasoning applies to credit cards.

• Pay yourself a salary: Regularly transfer a predetermined amount from your business account to your personal account as compensation for your work, treating it like any other business expense.

• Consult with professionals: Work with a financial advisor or accountant to help you establish and maintain a clear separation between your personal and business finances.

5. Cycle old files into storage.

You’ll find it easier to keep track of your business’s financial records if you cycle through them on a yearly basis. Storing a year's worth of records in storage every tax season will keep your workspace decluttered and force you to stick to a yearly filing system, keeping disorganization at bay.

Properly storing and cycling old files ensures compliance with any legal record retention requirements, protecting your business from potential penalties and legal issues.

Tips for Effectively Cycling Old Files into Storage:

• Create a storage plan: Develop a consistent method for labeling, organizing, and storing files to make them easily accessible when needed.

• Utilize offsite or digital storage: Consider using offsite storage facilities or secure digital storage solutions to protect sensitive financial information and save physical space in your office.

• Review retention requirements: Familiarize yourself with the legal record retention requirements for your industry and ensure your storage plan complies with these guidelines.

The new tax year is upon us, so taking the opportunity to streamline your bookkeeping will help you seriously de-stress. We can help you get started on the right foot — your future self will thank you.