A strong financial finish to the year is one of the best ways small businesses can set the stage for success in the new year. FSC First is committed to equipping business owners with practical tools to navigate financial challenges. To help you prepare for tax season, we’ve partnered with Hope Brown, MSA, AFSP, Founder and CEO of The Tax Minded Bookkeeper, to share expert tips to keep your business on solid footing.
According to Brown, 2025 will bring added complexity to the tax season. The IRS, bolstered by $57.8 billion in new funding through the Inflation Reduction Act (IRA) is ramping up audits to find funds to soothe the national debt. Proper documentation, bookkeeping, and preparation are critical to ensure that small businesses are in the clear and keep penalties to a minimum.
- Keep Consistent. Good tax preparation requires consistency and time management. While running your business, it’s easy to let bookkeeping fall to the wayside, but neglecting it can lead to inaccuracies, rushed pre-tax season work, and unnecessary stress. Brown recommends scheduling monthly or quarterly time to review your books and update your records—turning financial management into a habit, not a headache.
- Use Incremental Deadlines (and Put Them In Your Calendar Now). Like many business owners, Brown manages her time with her calendar. She recommends adding incremental deadlines for key tax milestones into your calendar to plan ahead, make things more manageable, and prevent last-minute panic.
- Look into Electronic Document Storage. With audits ramping up in 2025, protecting your documentation against fading, damage, or accidents can be important for protecting your business during audits. To prevent fading or accidental loss, save bank statements electronically, create backup copies of critical documents, and scan receipts. This approach ensures your records are ready for any eventuality, including an audit.
- If You’re Behind, Take Small Steps Forward. Feeling overwhelmed, Brown suggests business owners should “eat the elephant one bite at a time.” Start with small, manageable tasks to regain control of your bookkeeping, and don’t hesitate to call in a professional! “Expert guidance—whether that’s an accountant, bookkeeper, or whoever you choose—can save you stress and help you catch up,” says Brown.
As new tax laws come into play, staying informed can help your business keep on top of the future. The Tax Minded Bookkeeper sends out a regular newsletter and has a podcast, “Beyond the Receipts,” to help you keep current on new tax information, tips, and insights. FSC First also partners with knowledgeable experts to provide bookkeeping, financing, business management, and growth educational sessions.
