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.
Common business deductions include:
- 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.
- Set aside part of your income each month, about 20-30% is a good start.
This helps you avoid surprise tax bills at the end of the year.
5. Consider Quarterly Tax Payments
If you’re self employed or run a business, you may need to pay taxes every 3 months. This is called estimated tax.
Paying quarterly helps you stay on track and avoid big payments later.
6. Use Retirement or Savings Plans
Some business owners can put money into special savings or retirement plans, like an IRA or SEP-IRA.
This can lower your taxable income and help you save for the future.
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.