How to Make Tax Time Easier: Simple Bookkeeping Habits That Pay Off All Year

As September winds down, it’s hard to believe there are really only three months left until year-end. As we move into the 4th quarter, this is the perfect time to pause, reflect, and set yourself up for a smoother tax season.

The truth is that tax time doesn’t have to include long nights with spreadsheets or reconciling months and months of bank statements. With a few simple habits, practiced consistently, you can make year-end easier and keep your financial picture clear all year long.

1. Separate business and personal accounts

Mixing business and personal expenses is one of the most common bookkeeping mistakes solopreneurs make. It blurs the line between what’s deductible and what isn’t, makes reporting messy, and can even raise red flags if the IRS comes calling.

If you haven’t already, open a dedicated business checking account and credit card. From now until year-end, run every business transaction through those accounts. This one habit alone can save hours of cleanup later.

If you already have a dedicated business checking account, create a habit of paying yourself a fixed amount every week, every other week, or once a month to reduce the temptation of swiping the business card "because that is the account that has money in it".

2. Save receipts digitally

Shoeboxes, folders, or “I’ll remember later” systems almost always lead to frustration in December, ok let's be real - March. A better approach: snap a photo of receipts as soon as you get them and upload them into your bookkeeping software or a cloud drive.

Most accounting software options have receipt upload features built in, making it easy to keep everything stored in one place. Not only does this help with tax deductions, but it also gives you an organized paper trail if you ever need it.

3. Reconcile monthly

Reconciliation is the backbone of bookkeeping. It ensures every transaction is accounted for and catches errors before they can snowball.

Waiting until year-end to reconcile means digging through 12 months of records. Reconciling once a month takes only a few minutes and keeps your financial data accurate, reliable, and up-to-date so you can make well informed decisions throughout the year.

4. Track mileage and home office expenses consistently

Mileage and home office deductions can be valuable for solopreneurs, but only if they’re tracked properly. Too often, business owners try to estimate these numbers at year-end and leave money on the table, (or worse, overestimate and open themselves up to potential audits).

• Mileage: Use a mileage log app, a small notebook in your car, or a simple spreadsheet to record trips. Remember to note the destination & purpose as well as the mileage.

• Home office: Determine the percentage of your home used for business now, so you aren’t scrambling in January.

Small steps today can lead to significant tax savings later.

5. Set aside money for taxes as you go

Getting a huge tax bill in April and having no idea how you’re going to pay it is an avoidable stress.  Make it a habit to transfer a specific percentage of your profit (or income) into a separate savings account each month.

A general guideline is 20–30%, but the right number depends on your income and situation. To get a more accurate percentage talk to your tax preparer. By building this habit now, you’ll avoid the year-end panic of trying to come up with a lump sum at once.

Bonus: Review your numbers quarterly

Since Q3 is almost over, it’s the perfect time to run a Year to Date Profit & Loss statement and review your results through September.

• How does revenue compare to your goals?

• How does it compare to last year's revenue?

• Are expenses creeping higher than expected?

• Are you on track for the year, or do you need to make adjustments?

Catching issues now gives you three months to make adjustments before closing the books for 2025.

Final Thoughts

With Q3 wrapping up, now is the perfect time to start. Establish these habits today, and you’ll head into the new year with confidence, clarity, and peace of mind.

If it still feels overwhelming, Fournier Accounting & Bookkeeping Services is here to help you get caught up and on track for 2026. Reach out today!