Because not only does good planning help you stay ahead, but it also makes you avoid stress, and save money before tax season begins.
So here are 7 easy tax planning strategies for 2025 that every small business owner or freelancer should know.
1. Track All Income and Expenses
- Keep a record of everything your business earns and spends.
- Use folders, spreadsheets, or bookkeeping software like QuickBooks or Xero.
- When you know where your money goes, you can plan better and spot areas to save.
Explore our Full-Service Bookkeeping to stay organized year-round.
2. Separate Business and Personal Finance
Always use a different bank account and credit card for your business. This keeps your records clean and makes tax filing easier. It also helps you avoid mistakes or missing deductions.
3. Understand What You Can Deduct
A tax deduction lowers the amount of income you pay tax on.
Some common business deductions are:
- Office supplies
- Internet and phone bills
- Business travel or meals
- Software and tools
Write down these expenses throughout the year so you don’t forget them. Get help with your deductions through our Tax Preparation & Planning service
4. Set Aside Money For Taxes
- Don’t spend everything you earn.
- Put aside 20 to 30 percent of your income each month to start.
This helps you avoid surprise tax bills at the end of the year.
5. Think about paying your taxes every three months.
You might have to pay taxes every three months if you work for yourself or own a business. This is known as an estimated tax.Paying every three months helps you stay on track and avoid making big payments later.
6. Use plans for retirement or savings
Some business owners can open special savings or retirement accounts, such as an IRA or SEP-IRA. This can help you save for the future and lower your taxable income.
7. Work With a Bookkeeper or Tax Pro
If taxes confuse you or your business is growing fast, don’t do it alone.
A bookkeeper can give you year round support and help you stay organized.
Many offer full service bookkeeping, which includes tax help, planning, and more.
Consider our Mentorship & Assistance program if you’re looking to grow with confidence.
Final Thoughts
Planning ahead can make a big difference.
When you follow these simple tips, you save time, avoid stress, and pay only what you need.
Want expert help? Trusted bookkeeping services can keep your business ready and your taxes on track for 2025 and beyond.
