If you filed your taxes on time this year, you may be breathing a sigh of relief about not having to think about them again until next April. Before you wipe any traces of tax-induced sweat off your brow completely though, consider this: Sprinting to the IRS Tax Day finish line on an annual basis is not the best strategy if you want to lower your tax bill and improve the financial state of your business. Instead, consider adopting a “marathon” mindset when it comes to managing your money and tax obligations. It will not only help you avoid having to race to meet tax deadlines, but also keep your freelance business in tip top financial shape all year long. Here’s how to do it:
Just like real runners, freelancers who have a “marathon” mindset tend to be the fittest and most successful. Follow this strategy for your businesses and it can also lead to lower tax bills. Managing your money and tax obligations as a long-term process rather than a short-term “sprint” will not only strengthen your freelance finances, it will also alleviate the stress of scrambling to meet annual tax season deadlines and put you on the path to your personal and professional best.
Jonathan Medows is a certified public accountant licensed in New York, New Jersey, Maryland, and Pennsylvania. He is also a recognized expert in taxation for freelancers and the self-employed—often tapped for his expert knowledge and perspective on self-employment taxation by national and regional publications such as The New York Post, BusinessWeek, Forbes taxation blog, WebCPA, CPA Practice Advisor, and others. You can read some of Jonathan’s press coverage here.
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