On this episode, we welcome Kenesha Coleman, The Beauty CPA! She owns Coleman Tax and exclusively supports beauty professionals. Listen to find out more about Kenesha’s background and experience!
Today, we dive into tax planning! Here is the key, tax planning should be throughout the entire year to avoid people scrambling for their documents. Plus, any deductions that you are trying to receive must take place during the year. You can’t earn more deductions once the year is complete.
There are several things you should be doing, but we are diving into the top 3!
Bookkeeping
Setting aside tax money
Deductions
These three things all work together throughout the year!
Let’s dive into bookkeeping. What exactly is it? This means using an accounting software to track inflow and outflow of transactions that are categorized. Also, make sure you have a separate business account. Everything should be separate for tracking and potential auditing.
Second tip is setting aside money for taxes. Just because you charge $100 for a service, that doesn’t mean it is all yours. Some covers expenses and some covers taxes. The best policy is to set aside 25-30% of your income in a separate bank account. Best part is, once taxes are due, you won’t need to have a payment plan. By doing this, you will have a stack of cash that is available to cover that bill. Make sure you listen to this section—so many good tips and info about setting this up and what can happen without doing it!
The third tip is maximizing tax deductions. Most people are missing out here and it blows my mind! There are some simple questions about your business that can earn you some extra deductions. Mileage is a big one! We discredit how much those small trips add up to.
We need to flip our mindset on deductions. It is a smaller list to view things that you can’t deduct, rather than what you can deduct. Plus, there is no penalty for making a deduction that maybe shouldn’t be there when you file. This is where bookkeeping comes into play. Track and account for EVERYTHING. An accurate record allows you to take a deduction or credit for it.
Homework for you is to get your three steps set and get caught up! Make sure you get Kenesha’s guide on tax deductions!
ABOUT KENESHA COLEMAN
Kenesha Coleman is an award-winning CPA, IRS Enrolled Agent and Certified Tax Coach who specializes in helping ambitious and driven Beauty Entrepreneurs save money by optimizing their tax and financial lives. Her main mission and goal is to put Beauty Entrepreneurs in a position where they are paying the least amount of tax possible! Kenesha launched
ColemanTax in 2018 where the mission is to be the resource for small businesses by providing the tax and accounting expertise of a big tax firm in a comfortable small firm atmosphere with lots of personal attention. ColemanTax is a boutique tax firm that offers tax as well as CFO Level services.
✅Teach and explain in “plain language” the areas you should review in your business to identify tax savings opportunities.
✅Includes a complete framework to make sure you are considering all of the tax savings opportunities you are entitled to and not overpay in taxes.
✅Provide a tool for you to use to implement a Tax Planning review Standard of Operating Procedures (SOP) in your business you can use year after year.
