Home based business taxes got you down? Read on for some helpful advice.
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Is your home-based business ready for tax season? Does that question give you palpitations?
Hey mamma I get it, taxes used to FREAK ME OUT!
It would take days to collect all the receipts I had stashed in drawers and boxes. Then, I’d have to organize them, input them, and stress about “if I was doing it right.”
All I wanted to do was support my family with a home-based business, not stress out about my accounting skills!
I’ve recently started using Xero, an affordable accounting software. It’s made doing my business taxes MUCH easier. It also helps me get a clearer financial picture of my business.
I hate to spend money for my home based business on things unless they really provide value.
For a long time I just used spreadsheets to keep track of my accounting. As my income diversified however, it became clear that I needed a better accounting system.
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Keeping good books is a necessity for every small business.
If you are making any money from your home based business at all you need to keep track of that money. Even if you’re just starting out, having good books from day one will make your life easier in the future. #trustme
If you keep good records you’ll not only have a clear picture of your financial growth but your home based business taxes will be easier to do when the time comes.
Also, it is much easier to scale up a business if you have a clear view of your business’ financial health.
Some of the things I like about Xero
It’s cheap. Monthly plans start at $9 a month.
Xero lets you do a lot of things like send invoices, connect your bank account for real-time accounting, share your Xero account with your bookkeeper, set up W2’s and 1099s, and a lot more.
Xero also has a lot of automated features to help you save time. Many accounting tasks repeat often. A program like Xero let’s you automate some of those tasks to streamline your workflow and save you time.
The interface is pretty straightforward and there isn’t much of a learning curve.
When you first login and view your dashboard, there will be a “Welcome” video to watch that will show you around the software.
Everything is pretty straightforward but if you’ve never used an accounting software before, you might want to check out the video.
They also have more videos to watch for information on more specific questions related to the software. The degree of help or support you’ll need will depend on how much experience you have with accounting software. If you are totally new to it though, no worries! Xero has plenty of support to help you.
The customizable dashboard is layed out nicely with graphs showing your bank accounts, invoices owed to you, bills to pay, expense claims, and other business performance graphs. Depending on where you are in your business, you might not need all of these features. It also depends on what type of business you run.
There are tons of reports for your home based business taxes.
In fact there are 65 different reports you can populate.
These run the gamut from simple balance sheets to more complicated depreciation schedules.
All of the reports are customizable and work for different time frames. As you see above, you can also star certain reports for fast access.
I know that choosing an accounting software for your home based business is a little daunting. There are a lot of options out there!
If you want to see if Xero is a good accounting software for your home based business, you can get a free month trail. They don’t require a credit card either. You can try it out for free HERE.
So what do you think? Are you already using an accounting software? Or are you waiting to take the plunge? Let us know in the comments below.
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