January: New Year, Fresh Start: Bookkeeping Readiness for Wellness Practitioners
BLUF: We are here to help wellness practitioners kick off the new year with a clear plan to organize their bookkeeping, ensuring a stress-free tax filing process in March or April.
Blog: January is here, and while the world is busy setting resolutions, let’s set one for your business: staying ahead of your bookkeeping. A little effort now can save you countless headaches—and maybe even some money—when tax season rolls around. Let’s make this the year you are organized, confident, and ready.
A new year is the perfect time to take stock of your business finances and ensure you’re prepared for the months ahead. Start by gathering essential documents such as income records, receipts for deductible expenses, and bank statements from the past year. Double-check that all payments to contractors or vendors are properly recorded, and send out any required W-9 forms. Revisit your bookkeeping software or spreadsheets—are they up to date and accurately reflecting your income and expenses? If not, this is the time to reconcile your accounts and clean up any discrepancies. Be sure to review your profit and loss statement, which provides a snapshot of your business's financial health. For wellness practitioners, it’s especially important to identify deductions unique to your industry, like equipment, training, or even travel expenses. Tackling these tasks early ensures a smoother filing process when tax season arrives in March or April.
Tracking mileage is one of the most overlooked yet valuable ways to maximize deductions, especially for wellness practitioners who often travel to clients, workshops, or networking events. To make this process easier, start keeping a detailed log of your business-related travel. Include the date, purpose of the trip, starting and ending locations, and total miles driven. Using mileage tracking apps can save time and ensure accuracy, automatically recording trips as you drive. Remember, the IRS allows you to deduct a standard rate per mile, which can add up significantly over the year. If you missed tracking mileage last year, don’t worry—review your calendar and receipts for travel-related activities to reconstruct an estimate. Taking this small step now can result in big savings come tax time.
Think of this as your business’s detox session—a chance to clear out what’s unnecessary, focus on what matters, and set yourself up for a year of financial health. Just like aligning your body and mind, aligning your finances brings peace of mind and balance.
Tip of the Month: "Stay ahead by organizing your bookkeeping documents early."
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