TBH, doing taxes is not our favorite part of the beauty business. But with some organization along the way, it goes easier. Here are our tips on staying organized and doing what you can now to get ready for filing.
Get a credit card for your business
Get a credit card for your business and tag each expense. It makes it much easier to separate personal vs. business expenses. This means that all business expenses can be deducted: rent for studio space, materials, marketing, website, and training fees.
Even when you are paying a tax professional, it helps to have all the deductibles you are claiming beforehand. Keep in mind that business expenses may include client gifts, meals, gas and event fees as well.
Record and file keeping
Record keeping is ultimately about what works for you. Download your sales data from the software you use and store it.
Make a list of forms you might need:
- Form 1099-K is for independent business owners
- Form 1040 is due on April 15 for all individuals who meet a gross income requirement. Form 1040-ES (Estimated Tax for Individuals) is for individuals who pay more than $1000 on annual taxes.
- Schedule SE (Self-Employment Tax)
Invest in software
Invest in software such as QuickBooks to organize your finance and business expenses. You can link it to your business account or credit card to make the process even more seamless. There are options designed for small business owners or the self-employed, perfect for permanent makeup artists!
QuickBooks Self-Employed - $7 per month
QuickBooks Self-Employed TurboTax Bundle - $12 per month
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