It seems like there are three types of people out there when it comes to year-end and procrastinating. Which one would you classify yourself as?
- Uber prepared – You have been preparing for year-end all year long! You have a checklist of what you need to do and everything is tidy and organized, just like the rest of your life.
- Somewhat prepared – You were a little shocked when you realized it was time for year-end again. But by early January, you got everything together and tidied up.
- The Procrastinator – Every year you file an extension for your taxes, and even then wait until the final deadline to get your records together. Once you are done, you pray that you don’t have to think about year-end and taxes for at least another nine or twelve months or so.
Which one are you? Which one would you like to be? Most of us would likely say we have room for improvement. Here are three tips to help you to stop being a procrastinator with regards to the year-end work and being prepared for filing your taxes.
1. Start early
The key to overcoming procrastination is with preparation.
The key to overcoming procrastination is with preparation. When preparing for the year-end and tax season, you need to gather accurate information about your business upfront. How do you this?
Look over the reports your bookkeeper provides each quarter. This will help you to be mentally prepared for what you will have to do for the year-end. You will have a better idea about how much you will owe for taxes. Gather W-9s throughout the year for any new vendors so that 1099 time will be less stressful.
2. Focus on the benefits
The appeal of procrastination is that it brings you relief at the moment to not deal with the issue. However, that doesn’t mean the problem goes away; it is always in the back of your mind and adds unneeded stress.
The benefits of being prepared far outweigh the temporary relief of procrastinating. You can reduce your stress and feel ready to take on the new year. Anxiety over a list of urgent tasks can be replaced by examining your business model, brainstorming new ideas, or building client relationships.
3. Save for taxes
Sometimes the scariest part of year-end is not knowing if you have the cash to pay your taxes. Have you thought about having a separate bank account for tax savings? By having a dedicated savings account just for taxes, you can make sure that you are prepared.
Make this year the year you decide to stop being a procrastinator. Now is the best time to get started with good habits. By implementing these tips, you can relieve a lot of stress and feel good about year-end. Maybe paying your taxes will be less taxing!
Let us know on social media if you implement any of these tips and how they changed your year and your viewpoint on your year-end tasks.
Updated 10/14/2020