Biggest and best tax tip summed up in one word: Quickbooks.
Up to now, I have been fighting using Quickbooks. Accounting is not my favorite thing to do and I tend to be a major procrastinator when it comes to any book-keeping chores. And that is definitely how I see it - a chore. I'd much rather be making jewelry or any other of a myriad of activities. I'm sure many jewelry designers are just like me.
So for 2009 my new years resolution was to use Quickbooks. I initially had some problems setting it up. I would suggest having your accountant of other tax savvy person do your initial chart of accounts setup and run you through how to enter in your expenses, etc.. It can get a bit confusing.....In addition to my business checking account, two savings accounts, paypal account, I have a business credit card. Each of these accounts needs to be created and reconciled monthly. I am happy to say that I reconciled my accounts this weekend and am completely caught up. That is a wonderful feeling and I know that I won't have to go through the huge time consuming task that was before me last week- preparing my 2008 (pre-quickbooks) taxes for my accountant.
So last week I had to gather all of my expenses which was a 8" folder chalk full of receipts.
I spent two full days going through this humongous folder of my expenses, organizing and categorizing everything to prepare it for the "hand over". Then I had to organize and categorize all of my income sources. This is so much work every year and not very fun. I am so glad that next year, I can just send my accountant my Quickbooks file. I also have loved being able to print all kinds of reports to find out how my money is being spent. It is really eye-opening knowing exactly where you stand at any moment in both your income and expenses. If you don't already use Quickbooks, I would highly recommend it.