Let’s talk about your yearly tax appointment. Do you go into it nervous or unprepared? Maybe you bring in every paper and number possible because you don’t know what information your accountant or CPA actually needs. Then your meeting lasts forever because you have to sift through every paper to find the number they need, just to have to do it again for the next question they ask.
If either of these sounds like you, then today’s video is going to clear up the stress that piles up around tax season by walking you through three ways to make your accountant’s job easier during tax season and save you money in the long run.
And if you’re looking to keep more of your money in your pockets, you’re going to want to join me for my free class — Maximizing Your Tax Deductions as a Photographer. In this masterclass, I’ll walk you through the five most common tax deductions that photographers miss when preparing for tax season. (The ones I used to save $12,817 last year!) I’ll also give you actionable tips so you can maximize your deductions and keep more of your hard-earned money.
Make Your Accountant’s Job Easier: Come Prepared
The first thing that you should do to make your accountant’s job easier is come prepared for your meeting. Let’s break down some key things to have ready for your accountant on the business and personal side. On the business side, you’re going to want to have your total income at hand.
In addition, all of your expenses throughout the year should be broken down into the tax deduction categories. These two things, your income and expenses, can be shown on a profit and loss report if you work with a bookkeeper. If not, make sure to keep track of these things throughout the year. In addition, any equipment that you purchase should be written down for your accountant to see.
You should also have your estimated tax payment receipts, and if you have a home office, you should know what your utility bill totals are for the year, as well as your home square footage. In addition to that, you also want to make sure your mileage is organized into business and personal miles. Now, on the personal side, you’re going to want to make sure you have your social security numbers for everyone in the family.
Also, your bank information so that you can make a direct deposit or a direct payment for what you owe for your tax return. You’ll also want your health insurance coverage and any tax papers for additional sources of income, as well as donations that you’ve made throughout the year, retirement contributions, and medical expenses that you paid for.
Throughout the year, keep these items filed safe as they occur. Papers can be kept in a folder in your office. Emails can be saved in a folder in your inbox. and numbers can be tracked in a spreadsheet. If you don’t know where to start when it comes to creating a spreadsheet for taxes, check out my tax prep spreadsheet.
This spreadsheet will help you organize your business expenses and income by month and give you space to total up personal expenses as well. Keeping these items organized throughout the year will eliminate the stress of finding them when tax season comes around and allow you to get on your accountant’s books earlier.
Plus, they will easily be able to find the information they need, saving them time on your tax return, which will save you money in the long run. And, allow them to easily spot anything that you missed that could save you even more money.
Make Your Accountant’s Job Easier: Ask the Right Questions
The second thing that you want to make sure to do to make your accountant’s job easier is to ask the right questions.
Asking the right questions can not only eliminate incorrect information but also create savings opportunities. Don’t be afraid to ask them anything. There’s no such thing as a dumb question.
Let me say that again. There is no such thing as a dumb question. Asking a question may make a huge difference in the amount of taxes you owe.
Here are three questions that you can ask your accountant or CPA. What deductions and credits am I eligible for? Understanding which deductions and credits apply to your business can significantly reduce your tax liability and increase your savings. Ensure they cover specific deductions related to your industry, home office expenses, business travel equipment purchases, and any industry-specific credits as well.
The second question you can ask is “how should I structure my business for optimal tax benefits?” The structure of your business, which is things like sole proprietorship, LLC, S Corp, and so on, can greatly impact your tax obligations and potential benefits. Discuss the pros and cons of different business structures and how each can affect your taxes and any potential tax-saving opportunities with restructuring.
They can let you know when it would be best to make a switch so it can be most beneficial for your business financially.
The last question you could ask is “What strategies can I implement to better manage my cash flow and tax payments?” Efficient cash flow management is crucial for the financial health of your business and to avoid any surprises come tax season.
Ask about setting up a tax savings plan, making quarterly estimated tax payments, handling large expenses or revenue changes, and using accounting software to streamline your processes. The biggest thing is don’t just ask the questions to ask them. Make sure you’re understanding what they’re saying.
Check back in if you need more assistance or for them to verify you understood correctly. They are there to help you save, so reach out. Also, make an effort on your end to do some educating so you can confidently communicate with them as well.
Make Your Accountant’s Job Easier: Maintain Ongoing Communication
The last thing to do to make your accountant or CPA’s job easier is be sure to maintain ongoing communication with them throughout the year.
Make sure to keep your accountant or CPA informed of any major business changes, such as new income sources or large purchases you made for your business. Regular check-ins can keep your information up to date, making sure your taxes are filed correctly, and eliminating the back and forth during tax season.
Your accountant or CPA should feel like a bonus employee for your business. They’re the ones who will help you find savings that you wouldn’t have known otherwise. They will also give you their recommendation on when to do things so it can be the most impactful for your business and your bank account.
They want you to save wherever possible. You just need to be proactive so you can provide them with all the information they need to give you the best advice.
Let’s do a quick recap. The three things you can do to make your accountant or CPA’s job easier during tax season is to come prepared to your meeting, ask the right questions, and maintain ongoing communication with them.
Doing this will help eliminate the stress of tax season and save your business money on the taxes you owe.
Have questions about communicating with your accountant or CPA? Ask away in the comments!
Few things make me more excited than getting the chance to help another photographer prepare for an easier tax season (and keep more of their hard-earned income! So, don’t forget to sign up for my free class — Maximizing Your Tax Deductions as a Photographer.
Give me an hour of your time, and I can show you:
➡️How to reduce your tax liability and improve your cash flow with tax deductions.
➡️The 5 key deductions every photographer needs to know about (and should probably be using).
➡️What qualifies for these deductions, and what doesn’t.
➡️How to calculate the deductions that aren’t simple and straightforward.
Last year I saved $12,817 just by utilizing the 5 key deductions I’m going to be sharing with you, so this is a class you won’t want to miss!
Let’s Prep for Tax Season – Together
Keep more of what you make inside of your business with these 5 key deductions for photographers. I’m sharing all inside of my free class — Maximizing Your Tax Deductions as a Photographer!
Make tracking your numbers easy with my Tax Prep Spreadsheet and ensure that tax season is a breeze.
Transform your passion into a thriving business and unlock success for your photography business with my free guide to setting goals for the first year of your photography business.
Mastering your business taxes starts with understanding the different tax categories. Grab my free tax category guide to take the first step towards stress-free taxes today.
Want taxes to suck less? Learn how to correctly prepare your taxes for your accountant with the Photographer Tax Course – and say hello to a confident and calm tax season!
Don’t know what you don’t know? You’re just 90 minutes from a custom tax prep system with my 1:1 Tax Prep Mentoring sessions!
XOXO ~ Heather Marie
More Blog Posts for Photographers:
What Taxes Should You Charge Your Clients and What Taxes Do You Need to Pay?
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