Tax season is just around the corner. While I’m sure you wouldn’t purposely misstep with the IRS, it’s a good time to be cautious about your tax filing to avoid errors. For new business owners, navigating the tax landscape can be quite challenging. One small mistake could lead to an incorrect tax bill or even an audit, which no one wants to deal with.
It’s often beneficial to partner with a certified tax professional who can offer guidance throughout the year. But if you’re handling things solo for now, there are tools available that can help you steer clear of tax errors—and ones that might flag your business for an audit.
Tools to help you avoid tax mistakes
Utilizing comprehensive tax and accounting software can simplify your tax processes and minimize errors. The best accounting software connects with your bank and automates expense tracking, ensuring accuracy, especially with services like business credit cards and payroll. You’ll also want tax software compatible with your accounting platforms to automatically pull in your data.
QuickBooks is a commonly recommended accounting solution because it seamlessly integrates with your financial accounts and third-party apps like PayPal and Square, making it easier to track transactions. Even the basic version allows for income, sales, and expense tracking, receipt organization, invoice creation, and profit-loss report generation.
QuickBooks
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Fee
Prices vary based on the plan selected, but there’s a limited-time promotional offer for 50% off for the first three months.
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Distinctive features
Track income alongside business expenses, issue invoices, manage cash flow, and much more.
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Categorize your expenses
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Link to account
Yes, it integrates with bank accounts and supports third-party apps.
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Availability
Accessible through any web browser, plus both iOS and Android devices.
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Security features
Includes top-notch security like password-protected logins and 128-bit SSL encryption.
FreshBooks is another handy tool, enabling you to categorize and itemize expenses, making tax season much smoother. Plus, you can photograph business receipts to enhance expense tracking.
FreshBooks
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Fee
Pricing varies with the selected plan. Click ‘Details’ for more.
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Distinctive features
The Lite plan is user-friendly, with easy receipt upload and invoicing options. Designed for mobile use.
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Categorize your expenses
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Link to account
Yes, supports credit card and bank account linking.
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Security features
FreshBooks employs 256-bit SSL encryption and maintains minimal personal data collection, ensuring data safety.
