Updated: Apr 1, 2020
Tax season is in full effect and many Beauty-prenuers typically run from filing their taxes. Filing your taxes is not a hard process if you have systems in place that help keep your business expenses and revenue in order. When you are ready to file your business taxes, which is due by the 15th of March, what a tax professional typically want to see is your business Profit & Loss Statement.
What is a Profit & Loss statement? It’s a simple document that outlines the expenses of your business and the revenue that it made. Then it will also identify your business net income for the year based on your expenses minus your revenue. When keeping your business revenue and expense records you should keep the following receipts and/or reports for tax purposes:
Revenue reports. Does your business have one or many sources of how it receives its revenue? Examples are different POS (point of sale) providers like Square, Stripe, PayPal.
Expense reports. This report list can get really long so here are a few expenses that a business can write off on their taxes, so be sure to keep your receipts and a full report in your business file cabinets. You never know if your business taxes will be audited and you want to protect your business by keeping those documents in a safe place.
Payment processing fees from your POS (point of sale systems).
Equipment and tools.
Website & subscriptions fees.
Educational classes, seminars, workshops. Phone bill and other utilities.
And so much more expenses and earned revenue can be taken into account when prepping to file your business taxes. The key stress reliever is to ensure that you do great record keeping throughout the year yourself or hire someone or buy systems like QuickBooks, that can keep your business records for you. To ensure your business is on the right track with filing its taxes it’s important to seek a tax professional that can guide you through the process.