“If we are overwhelmed by our anxiety, that’s where it may lead us to avoid thinking about our finances or trying to avoid thinking about taxes.” - Lindsey Bryan-Podvin, Financial Therapist and founder of Mind, Money, Balance.
When you have that fear around taxes that maybe things aren't going well, or you’re not doing things correctly, it can cause you to avoid it all together.
Once you’ve avoided it, it makes it that much more difficult to go back and fix it. Until you're willing to do that, the anxiety and stress compounds and compounds.
The deadline dates for some can make them motivated. For others it can make them feel paralyzed. One of the steps to prevent this is uncovering the behavior that causes it: Avoidance.
Not looking at your finances doesn't change the state of them, but knowing your numbers and having accurate research and data does. Even if you’re looking at it and it's not good, at least you’re facing it.
Don’t avoid, but plan.
When fear and anxiety have a hold on you, it’s not that simple. The words make sense, but psychologically, you may be stuck and unable to do it. This is why having a bookkeeper is huge! They will hold you accountable, and lead with confidence.
Even when you do plan, you may still end up avoiding it. If the biggest reason for your anxiety is that you’re avoiding your books all year long, it’s 100% avoidable going forward. Make a date with your books and get it done.
The next step is gathering your information. W-9, 1099’s, write-offs, etc. If you have a bookkeeper and you’re not sure about something, ask! If you don't have a bookkeeper, but you’re a part of our facebook groups, you can still ask.
If you can identify that fear is what's causing you to avoid your numbers or being prepared, ask yourself if whatever you’re afraid of is actually likely to happen.
Oftentimes anxiety is the highest when we’re assuming the worst case scenario. An important aspect of facing your fears is letting someone in. Talk it out with someone you can trust.
It’s ok to not have it all together as a studio owner. Most don’t understand how all of this works, especially when it comes to taxes. Just because you don’t know something doesn't mean you’re a failure.
If you can focus on the fact that you’re on the way to having things done correctly, and that it will all work out, then it can at least shift your mindset from fear and anxiety, to hope.
If you prepare more, you will end up worrying less. These are things we know deep down. You know that the time and energy that you wasted being afraid and allowing yourself to succumb to anxiety, it's huge in comparison to the time it actually takes for you to get things done.
Don’t let the emotion of it keep you from making the small steps that you need to make. If you haven't; done it right all year long, that doesn’t mean you can't start now.
Go back as far as you need to and clean it up, so you can step into tax time with confidence. It can help you to start fresh and let it all go.
Resources to help you out during year-end: Https://harquinbookkeeping.com/boi
https://dancebookkeeping.co/yearend-checklist.
Want to lock in your rate for 2024? Fill out an estimate by December 26th to ensure you’re onboarded by January 1st! https://dancebookkeeping.co/estimate
Want us to speak on a specific topic in season 4? Email us at admin@dancebookkeeping.co to send your suggestions!