Online Sales Tax – 5 Simple Tips for Marketers
How do you manage online sales tax along with your self employment and other taxes. Start learning with these tax tips for online entrepreneurs.
When you’re self-employed there are multiple balls to be kept in the air at all time. Unfortunately, the online sales tax is one of them. The good news is, you don’t need to feel overwhelmed.
By incorporating some of the following tax tips for entrepreneurs into your business, you’ll find taxes can be a breeze!
1. Keep Accounts Separate
As soon as you start your online business it’s important to keep accounts separate. This means opening up a business bank account where you can easily keep track of any business expenses that may occur.
There are a number of free online checking account options, so you can easily do this without having to spend any additional money. Plus not having all the personal and business expenses intermingled will likely save you money along the way.
2. Set Aside Estimated Online Sales Tax Payments
If you’re working online as a freelancer or independent contractor, then you won’t have a paycheck that will be gradually taking out your taxes as you go along, which means you will be responsible for paying them in one lump sum come tax season.
If you don’t carefully monitor this you can reach tax time with a tax bill you’re unable to pay, which is a slippery soap to manage. Instead, set aside estimated tax payments as the year goes on.
3. Don’t Ignore Your Tax Bills
There’s a reason why the “death and taxes” saying exists. As many things as you can skip in life, your tax bill isn’t one of them. That’s why you never want to ignore a tax bill.
If you do, not only will you still have to eventually pay it, but you’ll have to pay it along with penalties. And unless you plan on skipping town and heading to Mexico, the lovely IRS will eventually be able to seize your bank account so you’ll be paying one way or another.
4. Know What You Can Write Off
As an online business owner, you have some flexibility on what you can and cannot write off. In fact, in some cases, you can write off a portion of your rent (if one room is used as a home office), travel expenses and even office supplies.
If you aren’t sure what you can and cannot write off, speak with a client first. You may be surprised to find just how much money you save by the end of the year.
5. Use the Right Tools
Some people want to be responsible and handle their taxes but simply aren’t good at it. In this case, you don’t want to pretend a weakness is a strength. Instead, hire an account or use one of the many tax platforms available.
Some tax platforms even come with additional features like invoices, sending contracts, and assigning tasks, making them a worthwhile option to look into for saving you time and money on your business.
Staying on Top of Your Business Needs
The more you research and learn about what your business takes to thrive, the better equipped you’ll be when sticky situations arise. Whether you are managing your online sales tax or crafting out a strong social media plan, the more work you put in ahead of time the more you’ll get out of the process.
What Do You Think ?
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