Tax time books made easy

FreshBooks does not offer done-for-you tax preparation and tax returns, but instead, we are an accounting software that allows you to track your expenses, income, and more while inviting your accountant to access these reports on FreshBooks.

While it might be too late to make changes to your 2024 taxes by the time you meet with your tax pro, you may still be able to reduce your tax bill. Talk to your accountant about what other options are available to you. One of the most common ways to reduce your tax liability after the tax year is over is to contribute money to an individual retirement account (IRA) or Simplified Employee Pension (SEP) IRA.
Talk to your accountant to see if this is a strategy you can use and how much you can contribute to your retirement account. There are contribution limits based on your business income and age, but it’s a great way to improve your tax return.

Working with an accountant isn’t just about filing federal, state, and local taxes. A good accountant can offer tax advice and help you strategically plan for a healthy business in the years to come. Ask your accountant if they offer advisory financial services to help you assess and grow your business.

You may specifically want to ask them about:

Cash flow analysis to help find opportunity areas

If you've ever obsessively stared at your bank account balance for minutes on end, you know that cash flow can be one of the most difficult aspects of running a small business. Your accountant can help you analyze your cash flow issues, give you advice on maximizing your tax credits, answer questions, and share advice and improvements so you peel your eyes away from those numbers and focus on growing your business! They can also help you simplify your personal income tax return so you can get the most tax deductions possible.

Financial forecasts and a business budget
Do you know where your business is headed? Your accountant should be able to help you put together financial forecasts for the upcoming year. You may also want to ask them to help you create a budget so you can make informed decisions about where and how to spend your money and invest in your business going forward.

No matter what tax software you are using, you need to successfully estimate how much to send in your quarterly or monthly payments. Are you sending enough money to the Internal Revenue Service (IRS) each quarter for your taxes? Send them too much, and your tax refund money essentially becomes an interest-free loan for the government that year. Send them too little, and you could owe money, plus run the risk of facing an underpayment penalty. Your tax preparer can look at your current and projected taxable income to ensure that you’re sending the IRS the right amount per quarter this year.

Don't forget to include estimated income from investment interest, foreign investment income, rental income, and capital gains when you make your quarterly tax installments so you aren't overwhelmed by an unexpectedly large tax bill when you file your tax return.

Are you looking to try things out and see what FreshBooks has to offer? Sign up for a 30-day free trial here to explore our features. 

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An Individual Taxpayer Identification Number (ITIN) is a 9-digit number the Internal Revenue Service (IRS) issues to people filing a tax return who are not U.S. citizens and who do not have or are not eligible for a Social Security number.Oct 31, 2024.