Appearing as part of our 2011 fiscal year end and tax preparation resources for small businesses.

Get ready for small business tax season

"Wait…I was supposed to track receipts?"

As a small business owner, it’s imperative that you track your income and expenses for tax purposes. If the year has gone by and you haven’t been doing this, see the steps below for ways to build your financial picture.

1. Start by either connecting your bank account to Wave, or uploading electronic bank statements, and then follow the instructions in our bank statement post.

2. Go through your email history and PayPal history, looking for receipts and invoices. Enter this information as you would if it were a receipt in your shoebox.

3. Ask your vendors for a statement of account, or any information they have about your expenses with them. This information should also be entered as if it were a receipt in your shoebox.

4. Tap any other sources where you may have been recording sales and expense information.  Once this data is input, you are ready to move on to Step 2 (if you imported bank statements) or Step 3 (if you entered receipts manually).

5. Don’t forget: You have a legal obligation to report your financial information. For the future, we recommend connecting your bank accounts to Wave, so you have an accurate financial picture going forward.

Need more help? If you want more assistance, or if you prefer to let someone else do the work, we can put you in touch with accountants and bookkeepers from the Wave Pro Network. Find a Wave Pro.

Make your next tax year as pain-free as possible: Sign up for free online accounting for small businesses, by Wave.