Tax time can make any entrepreneur want to run and hide. In direct sales, it can be further complicated because we do not necessarily have a financial adviser like a brick and mortar business would. Here are a few tips on taxes and record keeping to help you make sense of it all!
Find a specialist. Seek out someone who specializes in home based businesses and thoroughly understands direct sales. Special deductions are available to us as direct sellers. Just because they are a certified preparer does not mean they are versed in these areas. A dentist and a podiatrist are both doctors but you wouldn’t go to a podiatrist for a tooth ache. Every year I hear from people who over paid by THOUSANDS or WORSE, owe thousands because legitimate deductions were disallowed.
Commit to record keeping! It is part of your responsibility as a business owner. It is not an optional business activity. Not only is it required for taxes but, you must have a handle on your profitability. It requires a little extra time but is well worth it in the long run.
Show me the paper! The IRS love a paper trail. Keep everything. You can always throw it away if you don’t need it. Recreating is often quite a feat!
Don’t play the telephone operator game. Unfortunately, most direct sellers garner their tax advice from other consultants. That is great if he or she happens to be an expert in home based business taxes. The problem is the mountain of erroneous information that can cost you BIG. Common myths are perpetuated year after year. Some are a result of misunderstanding the tax codes while others are blatant advertising pitches taken as truth.
I hope you find these tips helpful as we embrace tax season. If you need more guidance, consider joining me and Direct Sales Tax Expert Monica Scanlon of Tax Pro To Go for the Tax Time Seminar this evening. $25 can save you thousands, simplify your life and help you become more profitable.
Michelle Archer is a certified coach with nearly 25 years experience in direct sales. Michelle works with companies and individuals to explode their business potential. Connect with her on Facebook Learn more at http://directsalesinstitute.com/