As a small business, with the right preparation, tax season doesn't have to be stressful. With the proper preparation, doing your taxes will be a breeze.

Way #1: Keep Business and Personal Life Separate

When it comes to your finances, you will want to keep your business and personal life separate. You should run all transactions for your business through your business account, and you shouldn't dig into your own personal pocket to fund your business. This will help you keep better track of your finances and make it easier to figure out your profit at the end of each year and your expenses.

Way #2: Use a Savings Account 

Second, it is important to open a savings account for your business. You can use your business savings account as a place to put money for your taxes. That way, you will not spend the money on your quarterly taxes, and when tax time comes, you will not be surprised with a big tax bill.

Way #3: Keep Receipts Digital

Third, you are going to want to keep your receipts digital. Many great apps allow you to take pictures of your receipts and make them digital. You can also use apps that will import your business receipts into a spreadsheet or accounting program. When it comes to running a business, you need to account for all your expenses with recipes, and you need to keep these records for several years. Digitizing receipts now will make it easier to keep track of these expense records over the long-term.

Way #4: Keep Detailed Logs

Fourth, you will want to keep detailed logs of things such as car and travel expenses. With these types of expenses, you need to detail the expense when it occurred and what it was for. You can keep a physical or digital travel log and car mileage log, so you have the records to back-up these expenses.

Way #5: Use Electronic Statements

Fifth, getting electronic statements for your bank and credit card accounts will save you from having to digitize these statements yourself later. With an electronic statement, the reconciling process will be easier to handle.

Way #6: Hire an Accountant

Finally, you don't have to take on handling all your tax prep on your own. When it comes to doing your taxes, you are going to want to hire an accountant. If you take all the above steps, it will be easy to share your records with your accountant and handle your taxes.

When it comes to your taxes, being prepared throughout the year by having a business checking and savings account, digitizing your receipts, switch to electronic statements, and hire services like Hough & Co CPA to help you file your taxes.