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Solopreneur Profit Guide Series, #3: It’s Time To Tackle Your Taxes

Welcome back to the third installment in our Profit Guide series, where we’re sharing the key steps solopreneurs should take before 2022 ends to increase your business profits by up to 10% without taking on new clients — or new stress.

Profits
November 1, 2022

Welcome back to the third installment in our Profit Guide series, where we’re sharing the key steps solopreneurs should take before 2022 ends to increase your business profits by up to 10% without taking on new clients — or new stress.

Missed the first 2 posts? Read the series in order:

Solopreneur Profit Guide Series, #1: Reclaim Your Profits

Solopreneur Profit Guide Series, #2: How Saying No Invites Joy (and Profit) In

Want the full checklist with all the steps? Get it below!

Guess where solopreneurs are the MOST vulnerable to accidentally eroding their own profits? That’s right…it’s when managing taxes. But the good news is that just a little bit of preparation can save you countless hours and help you avoid costly mistakes.

That’s why getting a jump on 2023 by tackling your taxes TODAY is a huge power move.

Step 1: Get a good estimate.

The first step to paying your solopreneur tax management is to find out how much you owe with our simple calculator. That will allow you to pay the right amount each quarter and always have enough set aside.

Step 2: Identify common deductions

Once you know how much tax you’ll owe, it’s time to find ways to reduce that amount. Any business expenses can reduce your overall burden, and that includes things like home office and internet, gas mileage if used for business purposes, and other things you might be overlooking. See our list of common deductions in our recent blog post!

Step 3: Pay your quarterlies

Better late than never! The IRS charges you a penalty in the form of interest on money you owed them earlier in the year and haven’t paid, so nothing increases your profits like NOT racking up any more extra fees. Now that you have a good estimate, get paid up! Want to do this with Ruby Money? It’s simple & easy in our app.

Step 4: Make a plan for filing

Being prepared to file come tax time in April means having kept a good record of your income, expenses, and quarterly payments throughout the year. If you wish to retain a CPA, you’ll want to do that well in advance of the calendar year-end as well, since many don’t take new clients between January and April.

→Try our CPA- approved spreadsheet

Hot take: You might have seen the headlines about the IRS getting an increased budget for enforcement and collection. What this could mean for you as a solopreneur is an increased chance of being audited and penalized for any tax mistakes, even inadvertent ones. There’s never been a more important time to get your house in order!

Marketing Manager
Isabel Sachs
Isabel Sachs is a Minneapolis-based freelance writer and content marketing consultant helping startups grow brand awareness via inspired content & the power of community.