Helpful Tax Preparation Insights for the Busy Yet Disorganized Entrepreneur
“I’ll be more organized next year.”
You said to yourself this time last year.
I have heard many times over the years how much people dislike not only paying taxes but how much they dislike pulling together all the paperwork to prepare their taxes.
If you are an employee it is usually pretty simple; however, if you are an entrepreneur or small business owner doing your taxes can be a tad more complicated.
This article is for you business owners who are facing the dreaded tax season.
Now before I go on, I want to be clear I am not an accountant, and this is not tax advice. I am a Personal Financial Planner and a Certified NLP Coach (NLP stands for Neuro-Linguistic Programming. Neuro refers to your neurology; Linguistic refers to how that neural language functions) and I am fascinated by human behaviour.
Over the years I’ve noticed there are two types of people:
- Organized – your expense spreadsheet or accounting app all up to date each month.
- Dis-Organized – your receipts are thrown in a box or file folder all crumpled and willy nilly… if you remembered to save them in the first place.
Which one is you?
If you are in the “organized” group, congratulations! You most likely run a successful and organized business.
If you are in the second group – the busy, creative entrepreneur that would rather spend time with people, closing the sale and being anywhere other than getting an organized bookkeeping system in place – you are not alone.
Don’t worry, this does not mean you are not successful.
What Could being Disorganized Mean?
There are several explanations to being of the disorganized type and the biggest reason might surprise you. Which of these resonates with you?
- You don’t know where to start as it all seems very overwhelming. Or,
At a deeper level I wonder if you are resistant to spending the time in your business with your numbers because it feels uncomfortable.
It might feel scary and embarrassing to truly understand where you stand financially.
You may be holding onto limiting beliefs consciously or unconsciously that are holding you back. For example, “I am not good at math” or “I am not a numbers person”. You may even be holding on to past Money or Goal Trauma so when you think about finally getting organized it triggers stressful memories.
We humans are programmed to avoid feeling uncomfortable.
Fear, for example, tells us we may be in mortal danger; therefore, we need to retreat and run or stand ready to battle.
Yet in today’s world perceived fears are everywhere. You have the freedom to choose how you respond.
I highly recommend you choose to get comfortable with your numbers. Chances are it’s not as hard or bad as you think it is and you might even surprise yourself.
What You Resist, Persists
This year I encourage you to make a commitment to do things differently with your receipts, books and taxes.
Firstly, spend some time getting to know and understand the financial side of your business. Taking responsibility and stepping up as a leader in all areas of your business is of utmost importance.
There are several ways to do this:
- Give yourself permission to hire someone who thrives working with numbers. Either to set you up or do ongoing work so you can focus on your areas of genius.
- Book time in your schedule to review your financial reports monthly.
- Work on changing your perception of numbers and money. What do you believe and is it true for you or a belief that is ready to change?
- Create a Plan: Financial Plan – Business Plan – Life Plan
- Make a game of it. For example, each month when I sit down to pay expenses I always round up to the nearest dollar and give appreciation for what that particular expense allowed me to create in my business.
Having the use of a cell phone allows me to keep in touch with clients, gives me freedom to work from anywhere so I can have a greater impact on my clients lives. This feels good!
The more you do it the more you look forward to the ritual of paying attention to the flow of money in and out of your life and business. - Download or install an app you can easily set up. I use Quickbooks for Business. A simple Excel or Numbers spreadsheet will do as well. Some financial institutions have Finance Trackers you could check out.
- Download your ebills monthly and save them in a folder so you do not have to hunt them down at tax time. Don’t forget to update your spreadsheet at the same time.
- Have fun with it! Hire a Financial Planner or Coach to guide you towards increasing your Financial IQ.
- Enjoy the feeling of accomplishment and celebrate!
The most successful entrepreneurs understand their strengths and weaknesses and know when hiring outside help is required.
I myself am not a paper person and prefer spending time being creative rather than paying bills and tracking expenses. Having solid systems in place is key, it frees you up to focus on what you love to do.
Remember “Money” has the meaning you give it. Change your story around money it will transform your life.
Remind others to get organized by sharing this article.
Barb Wallick
About the Author, Barb Wallick
Barb Wallick works with women who are looking to Create a Life They Never Want to Retire From.
A Personal Financial Planner, with 35 years experience along with her 3 Coaching Certifications, Barb truly guides her clients starting with Creating Clarity of Purpose, Goal Setting, Releasing Money Blocks using Time Line Therapy ® and practical Financial Planning.
For more information, visit www.barbwallick.com or find her on Facebook at www.facebook.com/barbswallick
