This is the season for spookiness and things that go bump in the night. But for small business owners, the scariest things aren’t ghosts or ghouls. They’re financial mistakes lurking in forgotten spreadsheets and neglected accounts.
The Phantom Receipts: Now You See Them, Now You Don’t
Have you ever realized that you forgot to record an expense or tossed a receipt before scanning it? At the time, it’s easy to think it’s not a big deal. However, all those little purchases that “don’t count” and the forgotten transactions here and there do add up over the year. Come tax season, it can be a big problem when you can’t account for all your money.
Trying to find the receipts for your purchases months later is a nightmare.
How to Banish the Ghost: Set up a simple digital receipt system and get in the habit of snapping a picture of every transaction before you forget. If you need paper documentation, keep an envelope anywhere you might end up with a receipt, such as in your car. Tuck them all in the envelope throughout the month, then put them in your file.
Zombie Transactions: Expenses That Won’t Stay Dead
When was the last time you double checked your accounts to ensure nothing was coming out that you forgot about? There’s not much worse than realizing months later that you’ve had an active subscription that you can’t reverse. Forgetting something financial can be a huge issue in your finances. Here’s what to watch for:
Unchecked transactions that can alter your financial picture
Old subscriptions that quietly drain money from your business
Unreconciled accounts that hide errors you’ll struggle to deal with later
Missed payments that accrue interest over time
It’s pretty obvious why this can be a problem, but these zombie transactions still catch people out all the time.
How to Kill the Zombie: Do a short review of your accounts each month. Take the time to review your recurring expenses so you can cancel anything that needs to be removed. You should also be sure that any outstanding bills are paid.
The Monster Under the Bed: Your Unexpected Tax Bill
If you’re the type to put off figuring out your taxes until March, you are in for a very unpleasant surprise. A very common problem is to consider money in your bank account as free-to-spend cash, when it really needs to be saved for tax payments. Sure, you can have deductions and reduce your final tax payment, but unless you’re already on top of it all, you won’t know how much money you need until it’s time to pay up.
The longer you ignore tax obligations, the more terrifying they become. It’s one of the reasons so many small business owners dread tax season.
How to Defeat the Monster: Go over your tax projections with a tax pro and be sure to set aside funds for any anticipated payments. Come tax time, you don’t have to panic, because you have everything all ready to go.
If you’re still nervous about facing tax season in the next few months, don’t worry. Ask Anna Tax is here to help. Contact us today to learn how you can make tax season a walk in the park.
