Taxes: the word alone can cause panic for entrepreneurs. Deadlines, regulations, tax returns—it all takes time, but there really is no need to stress about it! With a few smart habits and practical tips, you maintain an overview and peace of mind.
In this blog, we give you practical tips to make things a lot easier for yourself and prevent tax stress.
#1: Know what is expected of you (and when)
Much stress is caused by uncertainty, so make sure to schedule the most important tax moments in your calendar. As a starting entrepreneur, you will mainly have to deal with:
- VAT Return (When can depend on the country you are from)
- Income tax (once a year)
Add these deadlines to your calendar immediately and enable an automatic reminder. That way, you won’t have to keep thinking about it in between, and you’ll be notified on time.
Tip: even if you haven’t had any revenue, you often still have to file a tax return!
#2: Keep your records organized
Administration sounds bigger than it is; it doesn’t have to be difficult as long as you keep up with it. As accounting expert Marjan Heemskerk says: “You keep books primarily for yourself, not just for the Tax Authorities.” A few simple habits can make a world of difference:
- Use a separate business bank account .
- Keep your receipts and invoices in digital format .
- Update your accounts regularly (weekly or monthly).
Don’t view your administration as something for later, but as a tool for yourself. The better you have an overview, the less stress you will experience regarding your tax return.
#3 Use Aids
There are plenty of tools that can help you with the subject of tax; you certainly don’t have to do it all yourself! Consider:
- Accounting software: It centralizes your income/expenses and calculates VAT automatically.
- Calendar alerts: Use dedicated apps or simple reminders to never miss a deadline.
- Webador Export: If you have an online store with us, you can export your orders for your accounting with a single click. No more manual searching!
Do you have a webshop with Webador? Then you’ve come to the right place! You can easily export your orders for your administration. This way, you don’t have to search for everything individually, and you’ll be finished faster.
#4 Prepare your tax return
Don’t wait until the day before the deadline. Prepare the ground in advance:
- Gather your data: Revenue, business expenses, supporting documents.
- Check your deductions: Find out about allowances for self-employed individuals or new entrepreneurs.
- Request an extension: If you cannot meet the deadline, request a postponement in time.
#5 Perfection isn’t necessary, but being on time is!
One of the biggest pitfalls for starting entrepreneurs is the idea that everything has to be perfect right away, but that is not necessary at all! The Tax Authorities do not expect a perfect entrepreneur, but an honest entrepreneur who files their return on time.
It is far more important that you file your return with the information you have at that moment than that you keep delaying because you are still unsure about a detail. Are you unsure about something? You can often adjust it or ask about it later. Correcting a mistake is usually not a problem; being late, however, can cause unnecessary stress.
Conclusion
With a little preparation, established habits, and the right tools, doing your taxes will no longer stress you out. And the less time you spend on peripheral matters, the more room you have left for what you really enjoy: growing your business.
