How to Organize your Bookkeeping for Tax Time

How to Organize Your Bookkeeping For Tax Time


Organizing your Bookkeeping for Tax Time does not have to be painful. Here are some tips to stop some of the overwhelm.

This blog post is going to highlight 2 ways of organizing your Bookkeeping. It is not all inclusive and I suggest you choose the way that is best for your learning style!

Option 1: Excel Spreadsheet (Try our Exceptional Business Spreadsheet here)

Using Microsoft Excel or Google Sheets is a great starter option for getting your Bookkeeping organized.  Create columns separated by Months in Excel and input all of your Sales by each month. Then at the bottom of each column, label tabs for expenses. Here are some common ones below:

  • Travel (Flights, etc)
  • Advertising (Facebook Ads, etc)
  • Business Insurance
  • Office Expenses
  • Car Expenses (Repairs, etc)
  • Utilities (Internet, etc)
  • Dues & Subscriptions (Monthly Subscriptions)
  • Legal and Professional Fees
  • Merchant Fees

Continue to track your Income and Expenses this way to keep yourself caught up. When Tax Season is here, you already have all of your Bookkeeping done which will make Tax Time less stressful. When you file your Tax Return as a Freelancer or Small Business Owner, you have to report your Income and Expenses on your Tax Return. These two options will create organization of your business finances so that when Tax Season arrives, you are already ahead!

If you need an example of what my Bookkeeping Spreadsheet looks like, check it out on my Business Resource page here: Our ULTIMATE Bookkeeping Spreadsheet


Option 2: Accounting Software

Use an Accounting Software such as Quickbooks Online or Wave (Free Option) to do your Bookkeeping.

These software’s will already have the categories set up for you making it really easy for you. You can either manually add in your Income and Expenses or you can connect your Bank Account and add in your transactions that way.


What’s next?

When you are done adding all of your income/expenses to either options, then you should tally everything up. In Excel, you can add up all of the Income and all of the Expenses to one final column. These final numbers will have to be reported on your Tax Return. If you are using an Accounting Software, you can pull a Profit and Loss Statement (Income Statement) which will have the totals as well.


Need more resources? Check out my Exceptional Business Membership

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Nacondra Moran

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