5 Tax Organization Tips for Your Small Business

A small business owner tracking his taxes on paper.

While the approach of spring brings longer days and warmer weather, it also means tax season is just around the corner. For many, filing your taxes is high on the list of undesirable tasks (right next to getting a root canal). 

Tax season can be an especially daunting time for small business owners. From keeping track of records to filling out the correct forms, April 15 may feel like D-Day if you’re not properly organizing your taxes.

If you’re ready to make filing taxes easier for your small business, Freedom Storage Management can help. Learn how to keep your tax information organized with our tips.

1. Keep Your Records Organized

As a small business owner, you wear a lot of hats: daily operations manager, team leader, bookkeeper, and salesperson. No matter how many roles you have, however, it’s vital to the future of your business to keep track of your paper records.

While the IRS accepts electronic records as well, record keeping software can be complicated or expensive for small business owners. The Small Business Administration (SBA) even acknowledges paper record keeping as a more simple solution. It may take more time, but doing your small business taxes correctly through physical records is better than potentially doing them incorrectly with electronic record keeping software.

2. Create a Tax Folder Organizer

Wondering how to store receipts and other records? Manila folders are a small business owner’s best friend for tax season and record keeping. Designate and label a folder for specific types of records, including:

  • Employment taxes
  • Gross receipts
  • Expense receipts
  • Business purchases
  • And more

In addition to folders, consider investing in a filing cabinet to keep your records even more organized. If you work out of a small office or your home, you may need another storage solution for a large, bulky filing cabinet.

3. Know How Long to Retain Your Records

Small businesses are required to retain some tax records longer than others. The IRS has created comprehensive guidelines to help you understand how many years of taxes to keep. If you have records that you no longer use for tax purposes, however, the IRS recommends checking with your insurance company or creditors before shredding them.

4. Explore Educational Resources

The IRS may be the official resource for small business owners during tax season, but you can find external educators that can help you understand refunds, exemptions, and other tax-related concepts. Browse YouTube, talk to your financial institution, or enlist the help of a service like TurboTax.

5. Store Your Small Business Tax Records in Self Storage

Unlike your basement or small office, a self storage unit is a clean, affordable storage solution that can help you organize your small business for tax season and beyond. In addition to storing documents, you can use self storage to organize assets, equipment, and inventory. 

Prep Your Small Business for Tax Season with Freedom Storage Management

Whether you run a small business out of your home or prefer filing with paper documents over complex, pricey record keeping software, organizing your small business tax records can be quite the task. 
Before you mix personal and professional tax paperwork, or your guest bedroom becomes a small forest of documents, create the space you need with Freedom Storage Management. Find your self storage unit today!

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