Preparing for tax season can become stressful! Very stressful! I don't know about you, but I have procrastinated my taxes all the way up until this past weekend! *Tsk Tsk,* I know. But hey - I got them done and that's all that counts! Okay, what really counts is that I keep my finances organized for NEXT tax season now....sooo here's to five tips that have helped me to organize my finances to reduce stress at tax time!

1. Develop an Accounting System

Developing an accounting system that best fits you and your business takes time. It was a trial and error process for me, actually. I tried multiple accounting systems until I found one that worked best for me and met all of my needs. Developing an accounting system is the best way to track your income and all of your expenses and stay organized all at the same time.

What's working for me: The Easy Accounting Solution (Visit the website for a 2-day trial and let them know 'Megan Quigley' sent you!)

2. Dedicate Time

Now that you've developed a working accounting system, dedicate time to inputting all of your financial information into your accounting system! Whether you dedicate one day a week or one day a month, this will help you to stay more organized and will reduce the stress at tax time x1000!

What's working for me: I have dedicated every Wednesday morning to organizing receipts and inputting my financial information into my accounting system. Again, this is just what works best for me!

3. Develop a Filing System

Once you have input your expenses into your accounting system, it is vital that you save those receipts for tax time! So, developing an organized filing system is also very important! There are many ways to track these receipts. If you prefer keeping everything on paper, I suggest purchasing a small hand held filing box with file folders and labels, and keeping your receipts stored in categories (i.e. equipment/repairs, marketing, office supplies, etc.) or by months. If you prefer to keep everything stored via your computer, there are plenty of ways to do this, as well!

What's working for me: I keep all of my receipts in a filing box with monthly labels, all organized by date.

However, if you're looking for a great iPhone/Android app for scanning and storing receipts, search for the free app called Lemon!

4. Budget Your Finances

Creating a realistic budget will help you to prepare for any potential expenses that may come up in your business. Budget for things such as taxes, marketing & web design, education, equipment & repairs, product packaging, computer programs, office supplies, etc. Also, budgeting for finances helps reduce stress when we receive unexpected expenses with our equipment or other things, because we have already set aside the money for the potential of those circumstances within our budgets.

What's working for me: I have separate accounts open for separate budgets. When money comes in, certain percentages of that money is deposited into separate budgets right away.

5. Don't Stress!

When it comes to finances, just relax. If you spend time on stressing out, you are losing valuable time that you could instead dedicate to developing a strong working financial system. Getting organized is a vital part of running a business, but being stressed is not!

Smile & don't stress at tax time! Get organized instead!