Tax season is quickly approaching, and you might be sitting there overwhelmed because you are behind on your bookkeeping. Do not worry here are five steps to help you get back on track.

1. File for an Extension

If you are way behind and do not think you will be able to make the tax deadline have your tax professional or yourself file for an extension. The extension gives you six more months to file.

2. Gather your Financial Records

Gather all of the records you can such as bank statements including credit cards statements, expenses, payroll items, sales receipts, and paid invoices.

3. Organize your Financial Records

It is important that you organize your files in the appropriate categories.

1. Income from all sources
2. Cost of Goods Sold
   1. Subcontracted Services
   2. Materials Purchased
3. Expenses (Just a few subcategories to consider)
   1. Office Expenses
   2. Rent
   3. Utilities
   4. Payroll Expenses
   5. Travel Expenses
   6. Taxes
   7. Meals
   8. Independent Contractors
   9. Insurance Expenses
   10. Advertising and Promotions

4. Credits and Deductions

The tax codes change all the time so once your records have been collected and organized consult with a tax professional for credits and deductions. Ask about the new tax law where there is a 20% deduction on all qualified business income.

5. Start Bookkeeping for the New Year

You’re on a roll collecting and organizing so why not continue this system for the new year. If you want to continue doing the work yourself, we highly suggest Quickbooks Online. The new online accounting has so many amazing features. Additionally, you could hire a bookkeeping service like Atlas Financial Solutions to do all the work for you. This allows you to have more time for your business and yourself.