“Do you any CPAs/accountants who can help me file IRS taxes? I’m a single-member LLC/PLLC on a budget….”

Or ”…I’m a Sole Proprietor on a budget.”

Hi Friends,

This is probably the #1 most common question I get via email. And it’s a little complex to answer. Short answer ~ Not really, but I can still help you!

Please read on for some context, then options for you.

Context

Great accountants cost a little money. The ones I know generally charge $900 - $3000 for filing IRS taxes, with good reason. A great accountant is easier to work with, good with people, they will answer questions, they use robust software, and can advise you on decisions. And if you’re asking for a CPA, certified public accountant, they are more spendy because they have extra certifications and answer to a higher standard.
Here’s a list of accountants I know, and a few other finance folks.
Many self employed people - do not need an accountant. If your taxes are simple, you can file directly. Filing software is excellent at prompting us for what to report.
Also….if your taxes are simple, all the accountant is doing is entering it into their software. Without any value-add! A great one will look it over. Many of the cheaper-priced accountants simply enter it into the software for you. By the time you’ve given them all the info, you could have filed your own taxes.
Reasons to get an a great accountant:
- You have tricky taxes: investments, rentals, more than one home, etc.
- You’re filing as an S-corp
- You have employees
- To help you with decisions
- They lead you through the process of prepping your business info
- They answer questions in a friendly way
Reasons to get an a cheaper accountant:
- You like the deadline of getting all your forms + numbers to them
- It gives you peace of mind, it feels more official
- It’s part of your annual ritual

Options / to get accountant help on a budget

The most affordable way is to use tax software, and access the accountants / tax pros they offer!

Work with H&R Block. You can go into an H&R Block center, or get help online. I think you still enter everything into the computer, and for an extra fee, you can get a real person to help you with it.
Use TurboTax with “Live Full Service”. Or file yourself, using the Live Chat for questions.
Try Tax Slayer. Their standard package includes access to tax pros.

Friendly Reminder

No matter who you file with, you still have to do all of the prep work! It’s still on you to find all of the tax forms. And to collect all your business numbers. The “Filing” step is putting all of that info into the software. It’s the easier part…. Check out this newsletter for a few tools to help you with the prep step. If you like it, please leave a tip in the Tip Jar!

Good luck, you got this!
♡ Jenny

This is for anyone who needs to prep for IRS taxes all at once! Perhaps you “put it off until the last minute”. No problem! You’re safe here. Or, perhaps you just like doing all at once, and scheduled a day for it. Cool! There are many ways to approach taxes, and they’re all just fine. Read more about Tax Prep Styles to define yours. If you wish to break it up over multiple days, click here.

Okay, here we go.

Overview of the process

Collect stuff.
Find your numbers - wherever they are.
Add up in categories.
Put into a worksheet. Provided.
Then you’re ready to file!
Store your work in one place.
Bonus - Reward yourself.

Print the sheet and follow directions.

And/or read on.

1

Warm Up / Prep your space

Turn off email. Get some nice music, clear off the table. Use the worksheet to find everything that you might need. Get some favorite food or snacks.

2

Collect everything you can find

Use the worksheet as a guide.

3a.

Find your Gross Sales

This is the amount of total payments you received from clients / customers.

Ways to find this amount:

If you have tracking software, like Quickbooks or something specific to your practice (like Simple Practice for therapists), then get an Annual Report for the tax year.
If you’ve used one bank account for all deposits, simply look at the December statement and find the Year-to-Date deposits.
If you’ve used a spreadsheet, then highlight all the cells of income, then notice the Total.
If you have an income record, look there.
If none of the above, go to the next step.

Important Note! If you received 1099-NECs and/or 1099-Ks for some of your income, you will need to have all of those available.

3b.

Make an Income Record

• Have an income record? Print it out.

• If you have software, print a list of all income.

• If you’ve used a bank account/s …search transactions from Jan. 1 - Dec. 31 of last year, and then filter for Credits Only. Download and print.

• Need to make one? Use your calendar to make a list of all appointments or sales. Write the amounts earned next to each one. You can do this on paper or make a spreadsheet.

• Have invoices? Print them out, staple together as your record.

3c.

Expenses by category

Find all evidence of purchases for your business. Could be ~

paper receipts
online receipts
bank statements
credit card statements
utility bills

It doesn’t matter how you paid for the purchases, all of them can be deducted. (If you’re a sole proprietor or single member LLC.)

Now, we want to add them up by category. Use the sheet you already printed to see the categories. For more info on what expenses go where, click on this worksheet.

Have software?

quickbooks - print the P and L for last year
other software - print P and L for last year, or print all expenses then categorize

OR You can add up these amounts using ~

pen and paper
excel spreadsheet - type in date/amount/vendor by category
excel spreadsheet - download all expenses then, then categorize and sum

Email me if you’d like to use my spreadsheet. Please allow 3 - 5 business days.

Important Note - It doesn’t matter how you add them up! As long as you have subtotals for each category. And evidence for each expense.

3d.

Special case expenses - mileage and office

Did you drive for your business? Most any place that you drove, except to an office, can be deducted. There are two ways to claim this expense - actual cost of vehicle or mileage. I will only cover the Mileage Method here.

Mileage

What you need to find

total miles for the vehicle for the whole year
total miles for business use
total miles for personal use

If you have these figures, your accountant or tax software will do the rest.

Ways to find mileage

Used an app? Log in to find your report for last year.
Have a record, great!
Calculate miles - look at your calendar, make a list of dates/locations and use Mapquest or other site to calculate the mileage of your trips.

For total miles, do your best to guess your odometer reading for last January 1. Perhaps look at oil change records. For the ending mileage do the same. (In the future, make a note to yourself to write down your Odometer miles each January 1st.)

Office

There are two ways to claim this expense. I will only cover the Simplified Office expense here. Calculate the square footage of your office.

The accountant or tax software will know what to do.

3e.

Payments You Already Sent In

This is majorly important!!!!

These are the Estimated Quarterly Tax Payments you sent in, if you did. Only you can provide this info. Find the dates and amounts when you sent these in. Otherwise, you will not get credit for them!

Not sure? Look through all of your records, your bank statements, email. And/or call the IRS.

4

Check the worksheet

Look over the worksheet at everything you’ve collected. Try and think if anything is missing. Did you have any more business expenses? Any accounts you forgot to check? Find anything missing and add them. At some point, decide to be done!

5

Plan when to file

Doing this today? If not today, choose a day and put on your calendar. Not sure how to file? Read this post.

6a

Store everything

Keep these things out: Worksheet with all your figures AND any 1099-MISCs.

Gather all of your receipts, statements, calculations, notes. Print out and put into a box, or envelope. Label with the Tax Year.

6b

Reward yourself!

Phew, that was a lot of work. Be nice to yourself this evening. Maybe order take-out or go out. Maybe a bath or binge watch some shows. Maybe online shop for something you’ve wanted. Just be sure to be nice to yourself AND get a reward…or put one on your calendar asap. Here’s a menu if you’re not sure what you need.

♥ ♥ ♥ ♥ ♥

Was this helpful? If yes, please considering leaving a Tip in the Tip Jar …. and/or forwarding to a friend. Thanks so much!

: ) Jenny Girl Friday.