I’ve been self-employed for almost 27 years, and recently, I've transformed my tax preparation from a 40-hour ordeal every January into a streamlined process that requires just a couple of hours. In this episode of Building the Balanced Life, I share how I maintain my tax records.

My four key strategies:

1. Use budgeting software like Monarch Money to track your business and personal expenses year-round, making it easy to generate reports and P&L statements at tax time
2. Implement a simple physical organization system, like a yearly storage container for all financial documents and receipts. I will show you the exact one I use, which has helped me keep things organized for 25 years.
3. Consult with your accountant in May (after tax season) to get advice on potential improvements or tax strategy adjustments
4. Use tax software and professional help rather than attempting to navigate complex tax codes alone

Remember: Tax deductions only reduce your taxable amount rather than providing "free money" from the government. Don't buy something just because it's tax-deductible!

By following these practical solutions, you'll save significant time, reduce stress during tax season, and maintain better financial awareness throughout the year.

Stay tuned for my upcoming free tools for freelancers, homeschoolers, business owners, and writers, which will be available through my Instagram and LinkedIn profiles.

00:00 Introduction to Tax Time Tips

03:02 Utilizing Software for Tax Management

05:48 Organizational Strategies for Tax Records

09:04 Understanding Tax Deductions

11:50 Conclusion and Resources

Monarch Money

If you're ready to get your finances organized like I have, check out Monarch Money through my affiliate link below. It's the tool that finally helped me see the complete picture of my money and make better decisions without feeling overwhelmed. I genuinely use it daily and recommend it to friends and family. Your support through this link helps keep this podcast going at no extra cost to you!

Check out Monarch Money!

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