April is known as much for being “tax time” as it is for being the month where we usually expect more showers that pave the way for May flowers.

All forms of entrepreneurship require the entrepreneur to own the process of ensuring taxes are filed in a timely fashion. In order to do this, every entrepreneur must keep track of “Income vs Expenses.” It is also important to understand what expenses can be filed as legitimate business expenses and not expenses associated with miscellaneous expenses  that we may have made even though they were made in support of the business.

Each year, the experience of filing income taxes provides key learning. Sometimes we learn that our book keeping systems do not provide all that we need or the process associated with recapping the previous year and filing another return is simply too cumbersome.

We recommend a bookkeeping system in our Essential Resources section. Everyone has to make their own choices as to what system is eventually used. This time of year always provides us with an opportunity to reevaluate the systems and processes we have been using. This is also that time of year to make a change in the system we currently use when evaluation of a current system may reveal a need for change.  There are many systems designed to support entrepreneurs. The individual entrepreneur strives to find simplicity and ease of the bookkeeping process. When needing to recap business performance during a past year or even each quarter, the system you use should provide easy tracking, probably linked to your primary bank account. When you desire reports, you should be able to click on the report and immediately be able to analyze your performance within proper book keeping guidelines acceptable for tax filing.