You know it’s that time of year again when you start seeing Turbotax and H&R Block commercials pop up in between your Youtube and Hulu shows….
When money experts online suddenly won’t stop posting about it…
Maybe the new year is bittersweet for you because you have to get past this first before being able to dive right into the fun goals and purchases you planned for your business and life….
You know what it is…
A familiar term…
Tax season.
DUN. DUN. DUN.
Drama aside, I don’t think I need to remind you that it’s time to file your taxes haha.
But what if I told you this:
⭐️ After you read this email, you’re gonna be ready to tackle taxes ⭐️
Here’s why I’m confident.
I started my career in taxes. I prepared and filed over 500 tax returns over several years, for both individuals and businesses, including household name individuals and companies. I’ve also filed my own taxes for the last 7 years. What I’m sharing below is exactly what I do every single year.
Second reason. You run a whole business, my friend! ! You are competent. You are smart. I know you can do this yourself!
If you don’t already have a system for taxes, this is for you.
⭐️ Step 1: Create a tax prep folder system
Create one main folder called Taxes 2025
Inside it, add two folders: Personal and Business
That’s it here! Let’s keep going.
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⭐️ Step 2: Download your bank + credit card statements
Download monthly statements for all accounts you used. This includes checking, savings, business cards, and personal cards used for business.
Save PDFs.
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⭐️ Step 3: Save required business receipts ($75+ )
Any business expense $75+ needs a receipt.
Save PDFs or photos in a Receipts folder under Business
Name files with date, vendor, and amount
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⭐️ Step 4: Put everything in one place.
One home for everything is the system.
Upload all statements, receipts, and tax documents into your folders!
Here are some docs (or spreadsheets) you might need:
Business Stuff
1099s received or issued
Mileage totals
Home office info
Equipment or large purchases
Personal Stuff
W2s
1099s received
Investment Statements (often arrive around Feb or March)
Prior year tax returns
If you itemize personal deductions, save:
Mortgage interest forms
Charitable donations
Medical expenses if applicable
******If you’re unsure what applies to you, your CPA can confirm!****
If you use a bookkeeping software ↓
⭐️ Step 5: Confirm books are complete
Books (aka money records) should be finished through December 31.
All accounts reconciled (meaning they match with the bank statements).
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⭐️ Step 6: Export your reports
Trust me when I say your accountant’s gonna love this. 🤩
Save these into one Excel file or Google Sheet, using separate tabs:
Trial Balance
Profit and Loss
Balance Sheet
Owner’s Draw or distribution details
Estimated tax payments
Business Gifts
Asset and Depreciation details
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If you do not use a bookkeeping software ↓
⭐️ Step 5: Create a simple tax summary
It’s similar to the above spreadsheet I mention above!
Create one spreadsheet with:
Total income
Total expenses by category
Owner’s draw (aka how much you paid yourself this year)
Estimated tax payments
Business gifts
Equipments purchases over $2500
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Final Boss: Notes
⭐️ Step…Final: Write a list of special nuances and notes that happened during the year.
Actually let’s romanticize it a bit and call it an end-of-year reflection! 🤠
List special situations from the year. Think: starting or closing a business, moving states, large purchases, new income streams, or anything you are unsure about.
You now have a tax system.
If you’ve been putting this off, take this as your sign to start! You don’t need to do it all at once. One step at a time counts, and you can add documents as they come in.
Once this is done, tax season stops feeling heavy. You will feel organized, clear, and in control. That peace alone is soo worth it!
This is part of caring for a business you want to sustain.
And if you want help setting this up or cleaning it up, you know where to find me!
Cheering you on, always.
xo,
Lika Shim
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