Jumpstart Your Tax Prep: Year-Round Strategies for Stress-Free Filing - Nancy Ward

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[00:00:00]: As solopreneurs and direct sellers, many of you are at the stage where your business is growing, but you might still be mingling your personal and business expenses. Maybe you don't have an accounting system yet and instead you're relying on landing pages, payment apps like Venmo or PayPal, or manually tracking your sales. If that sounds like you, you're not alone. This is incredibly common at this stage of business, and it's okay Hi, I'm Nancy Ward and as a financial coach, I specialize in helping small business owners like you create systems to manage your money confidently. I've worked with so many entrepreneurs who are passionate about their work but feel stuck and overwhelmed when it comes to managing finances, especially preparing for the tax season. I'm here to help you simplify that process. One of the biggest challenges I see is not having a system for tracking income, managing expenses, or staying organized for taxes that can lead to missed deductions, underreported income, or feeling completely overwhelmed when tax time rolls around. But here's the good news.  

[00:01:10]: Staying tax ready doesn't have to be complicated or time consuming. Now, before we dive in, let me clarify that I am not a tax advisor or an accountant. I'm here to share practical tips and strategies to help you get organized and stay on top of your finances. If you need specific tax advice, I always recommend reaching out to a qualified professional. With that said, today I'm going to share five simple steps that you can take to feel confident and prepared for the tax season. These steps are designed to fit your busy lifestyle as a solopreneur or direct seller, so let's get started. Step one Separating Business and Personal Finances One of the first steps of being tax ready is keeping your business and personal finances separate. If you're using the same credit card or bank account for both, it's easy for things to get messy.  

[00:02:11]: Here are some suggestions of what you can Open up a dedicated business account if you haven't already, open a separate bank account and consider using a business credit card for all the expenses related to your business. This makes it easier to track spending and keeps your records clean. Run income Reports Many direct sellers and online entrepreneurs rely on their customer management systems or platforms like Shopify, Etsy and other sales systems. Learn how to generate income reports from these platforms as they are a valuable tool when it comes time to report your income. Check out payment apps such as Venmo, PayPal, or Cash App where you may have received customer payments. These platforms also allow you to download reports to help you keep track of your income, keeping all of your income related information in one place such as a spreadsheet, a simple app, or even a notepad so nothing gets lost in the shuffle. Step 2 Tracking your business expenses when you're busy running your business, it's so easy to forget about tracking expenses. But every missed deduction is money left on the table with traditional business expenses.

[00:03:41]: These are going to be relevant to what you do in your work Advertising such as social media ads, business cards and even your website office supplies such as printers, papers, pens, notepads, business tools or samples and software subscriptions for running your business like Canva, Zoom, or your customer management system. One thing to note that mileage and client lunches often have restrictions, so be sure to know the rules about those before claiming them. Internet and phone bills usually only apply if you qualify for a home office deduction or which may not be relevant for many online or direct sellers. Use apps like QuickBooks, Wave, or even a simple folder on your phone to take pictures of your receipts as you get them. You can also print off receipts as you receive them from different vendors. Having them organized into different file folders will help during tax time. Staying organized throughout the year will save you hours of frustration later. Step 3 Plan ahead for taxes Most direct sellers and solopreneurs won't need to worry about paying estimated taxes unless their income reaches a certain threshold.  

[00:05:01]: For those earning higher amounts, the company's home office will typically issue a 1099 form at the end of the year. However, everyone should be planning ahead to avoid being caught off guard when it's time to pay your taxes. What I'd suggest you might do is to set aside a percentage of each payment that you receive, whether it's 15% or 20%, and put that into a separate savings account labeled taxes. This simple habit ensures that when the tax bill comes, you already have the money set aside. Even if you're not required to pay quarterly income taxes, saving consistently throughout the year will will give you peace of mind at tax time. Step 4 Save receipts and stay audit ready Nobody wants to think about audits, but they do happen, and when they do, having your receipts and records organized can save you a lot of trouble. You can digitize everything with apps such as Expensify or Shoeboxed to scan and store receipts. You can also categorize by month or by type.  

[00:06:14]: Create folders, whether it's physical or digital, to keep your receipts grouped logically and also follow the rule of retention. Keep all tax related records for at least three to five years One way to keep on top of all of this organization is to schedule a weekly money date with yourself to file receipts, review expenses and keep everything in order. It only takes 15 minutes and saves so much stress later. Step 5 Use the right Tools or Hire Help let's face it, not everyone has the time or interest to do this all by themselves. And it's okay for simple finances. Consider using software such as TurboTax or H& R Block to guide you through the process. If your finances are a little more complex or you simply want peace of mind, hire a tax professional familiar with small businesses and direct sellers. Regardless of your approach, always review your tax return to ensure accuracy.  Nancy Ward [00:07:19]: Think of a professional as an investment into your business rather than an expense. A good tax professional could save you far more than the fee in deductions or credits.

[00:07:34]: Let's talk about something that isn't always mentioned in business advice circles, but absolutely should be your personal finances. Your business and your personal life might be two different things on paper, but financially they are deeply connected, especially if you're a solopreneur or in the early stages of growing your business. Your personal financial health plays a huge role in your ability to succeed professionally. When your home finances are shaky, when you're constantly worried about making rent, keeping up with bills or credit card balances that are piling up, it creates background noise of stress that follows you into your business. You may find yourself making decisions from a place of fear rather than strategy. For example, you might be holding on to clients or offers that don't align with your long term goals because you need the money now. Delaying investments in tools, education or support that would help your business grow. And your pricing may be too low because you're afraid people won't pay more and you need the cash immediately.  

[00:08:42]: But when your personal finances are stable, you're able to show up with clarity, confidence and creativity. You don't feel desperate, and that shows in how you show up as a business owner. You're able to plan long term instead of just getting through the month. Now let's talk about something most new business owners don't realize at first. Your personal credit score is going to carry weight. A lot of weight if you ever want to fund your business. As your business grows, you might need a line of credit to manage cash flow, a business credit card with higher limits, or a loan for expansion or inventory. But most lenders don't care about your potential.  

[00:09:24]: They care about your creditworthiness. And when your business is still young and doesn't have a long financial track record, they'll turn to your personal credit score as a proxy.  

[00:09:36]: So what does this mean?  

[00:09:38]: Paying bills on time isn't just about avoiding the late fees. It's about building trust. Keeping your credit utilization low, ideally under 30%, shows lenders that you manage money responsibly. Avoiding maxed out credit cards or late payments could be the reason you qualify or don't for a loan when you need it the most. Even if you don't think you'll need the funding. Keeping a strong credit score gives you options. And options mean power. Let's shift gears for a minute and talk about your personal budget.  Speaker B [00:10:14]: Your business may not always bring in steady income, especially if you're in direct sales or launching something new. There will be good months and slow ones, and that's just part of the journey.  

[00:10:27]: But what helps you ride that wave.  

[00:10:29]: Without panicking is having a personal budget that gives you a buffer. You know your exact monthly expenses so you know how much you need your business to bring in. You've built a cushion or emergency fund so you can handle a dip in sales without going into panic mode. You're not relying on every dollar of business income just to stay afloat personally, which frees you up to reinvest back in your business when needed. Your personal budget gives you stability. It's the foundation under your business. Just to let you know, you do not have to have this all figured out right now. If your personal finances feel like a mess, that doesn't mean you're a bad business owner.  

 [00:11:17]: It just means there's an opportunity to create more peace and clarity in your life. Start with some small changes. Know what your monthly expenses are. Write them down. Even in a calendar. Track your personal spending for 30 days. You'll be amazed at what you've been spending your money on. Get current on your bills and make a plan for any debt that you're carrying.

[00:11:43]: Have a payoff plan. Check your credit score and look for areas to improve. Little by little, these shifts will reduce your financial anxiety and give you more control, and that shows up how you run your business. At the end of the day, being a business owner means taking full ownership of your money on both sides. When your personal finances are strong, your business is stronger too. You're able to make better decisions, weather tough seasons, and grow from a place of confidence, not fear.  

[00:12:17]: If you're not sure where to start.  

[00:12:19]: Just pick one area. Maybe it's reviewing your spending or organizing your bills or checking your credit score. But the most important thing is to take action because A financially empowered business starts with a financially empowered you.  Nancy Ward

[00:12:38]: So to review, everything I talked about today is to separate your business and personal finances, track your business expenses, plan ahead for taxes, save receipts and stay audit ready and use the right tools or hire help. Taxes don't have to be overwhelming. By following these five steps, you'll set yourself up for success, protect your business and keep more of your hard earned money. Before we wrap up, I want to.

[00:13:08]: Make sure you get access to a free resource I created just for entrepreneurs like you. It's called the Tax Prep Quick Start Guide for solopreneurs and direct sellers. This guide is perfect if you're ready to stop the last minute scramble at.  Nancy Ward

[00:13:22]: Tax time and want to feel more.

[00:13:24]: In control of your business finances. It's simple, actionable and designed to help you start organizing your income and expenses without getting overwhelmed. Inside, you'll find tips on how to separate your business and personal finances, how to run income reports from your CRM or payment apps, and a clear checklist of monthly, quarterly and yearly actions to keep you on track all year long.  Nancy Ward

[00:13:50]: Even if you're just starting out or.  

[00:13:52]: You'Re not sure where to begin, this guide breaks it down into manageable steps so you can take action right away. No accounting background required. You can download the Tax Prep Quick Start Guide for free. It's a great first step towards getting your business finances organized so tax season isn't something that you dread. So grab your copy, give it a quick read and start checking a few things off the list this week. You'll be amazed at how much clarity and peace of mind even small steps can bring. Thank you so much for spending time with me today. I hope you're walking away with a.

[00:14:27]: Few practical steps you can take in.  

[00:14:29]: Order to feel more confident and prepared not just for the tax season, but for your ongoing financial side of your business. Whether you're in your first year or finding your rhythm after a few seasons, just remember, staying organized and informed with.  

[00:14:43]: Your finances is one of the best.  

[00:14:44]: Ways to protect your profits, reduce stress and grow with confidence. If something we talked about today sparked a question or made you realize that you could use a little more clarity, please don't hesitate to reach out. I always love hearing from fellow entrepreneurs and you're never bothering me, asking for support or sharing where you're at, wishing you continued success in your business and peace of mind in your finances. You've got this.