Tax Season is Over… Now What?
You did it! You survived tax season—whew! Whether you handled your taxes yourself or worked with an accountant, that stress-filled deadline is now behind you. But before you breathe a sigh of relief and move on, there’s still some important work to do.
A solid post-tax season financial plan will help you stay organized, avoid surprises, and make next year’s tax season much easier. Plus, good financial habits ensure that your law firm or practice remains profitable and compliant year-round.
Not sure where to start? This financial checklist is your step-by-step guide to staying on track after tax season. Let’s dive in!
1. Review Your Tax Return for Missed Deductions & Errors
Before you file away your tax return and forget about it, take a final look at what was filed. This is a great opportunity to:
✅ Double-check deductions – Did you miss any business expenses you could have written off? Common ones attorneys overlook include bar association fees, continuing legal education (CLE), and legal research tools.
✅ Review tax credits – If you made retirement contributions or energy-efficient office upgrades, you may have qualified for tax credits that reduce your overall tax bill.
✅ Spot filing mistakes – Even small mistakes, like reporting the wrong income or forgetting a 1099, can trigger IRS audits or penalties. If something looks off, consult with your accountant immediately.
📌 Pro Tip: If you did miss deductions, consider filing an amended return (Form 1040-X) to reclaim money you could have saved.
2. Organize & Secure Your Financial Records
Keeping well-organized financial records is essential, not just for taxes but for tracking profitability, preparing for audits, and making business decisions.
Here’s what you should do:
✅ Digitize and categorize – Store receipts, invoices, and bank statements in a secure cloud-based system like QuickBooks or Google Drive.
✅ Back up everything – Use encrypted storage or a password-protected external hard drive to prevent data loss.
✅ Set up a system for next year – Organize your financial records by category (income, expenses, deductions, tax payments) so tax time is a breeze.
💡 Did tax season feel chaotic this year? If so, it’s time to implement a better bookkeeping system or hire a professional bookkeeper to keep everything in order.
3. Plan for Quarterly Estimated Tax Payments
If you’re self-employed or run your own law firm, you’re likely required to pay quarterly estimated taxes to avoid penalties. These are due:
📅 April 15, June 15, September 15, and January 15 of the following year.
To make this easier:
✅ Calculate how much you’ll owe – Use last year’s tax bill as a baseline, or work with an accountant to estimate your liability based on income projections.
✅ Set up automatic transfers – Put money into a separate tax savings account each month to ensure you’re prepared.
✅ Pay online – The IRS allows direct online payments through IRS Direct Pay. It’s fast, secure, and helps you avoid late fees.
📌 Pro Tip: If your income fluctuates, adjust your quarterly payments accordingly. Overpaying? You’re giving the IRS an interest-free loan. Underpaying? You could face penalties. A tax expert can help you strike the right balance.
4. Reevaluate Your Law Firm’s Financial Health
Now that tax season is over, it’s a great time to check in on your law firm’s financial stability.
Questions to Ask Yourself:
🔹 Am I charging enough? If your overhead is rising but your fees haven’t changed, it may be time to adjust your rates.
🔹 Do I have a clear budget? Review expenses and look for areas to cut unnecessary costs.
🔹 Is my cash flow healthy? If clients are slow to pay invoices, consider automating reminders or adjusting payment terms.
🔹 Should I restructure my business entity? Depending on your revenue, switching to an S-Corp or LLC could offer tax advantages.
💡 If your finances feel overwhelming, consider hiring a bookkeeper to help track your income and expenses throughout the year.
5. Maximize Your Retirement Contributions
Many attorneys overlook the tax-saving power of retirement contributions. Not only do they help you save for the future, but they also reduce your taxable income.
Retirement Options for Attorneys:
✔ Solo 401(k): Great for solo practitioners, allowing up to $69,000 in contributions (2024 limit, including employer match).
✔ SEP IRA: Ideal for small firms, offering contributions up to 25% of compensation (capped at $69,000).
✔ Traditional IRA: Contributions are tax-deductible, reducing your taxable income now.
✔ Roth IRA: Pay taxes now, but enjoy tax-free withdrawals in retirement.
📌 Pro Tip: If you didn’t max out your contributions before filing your tax return, you may still have time to contribute for the previous tax year until April 15!
6. Start Preparing for Next Year’s Tax Season (Yes, Already!)
It’s never too early to get a jumpstart on next year’s taxes. Here’s how:
✅ Keep up with bookkeeping – Track income and expenses monthly instead of scrambling at year-end.
✅ Save receipts in real-time – Use apps like Expensify or QuickBooks to scan receipts on the go.
✅ Stay updated on tax law changes – Deductions and tax rates can change yearly, so staying informed can help you save more.
📌 Want to make next tax season stress-free? Start working with a professional bookkeeper now to avoid the last-minute rush.
Tax season may be over, but your financial planning shouldn’t stop here. By staying proactive with bookkeeping, tax payments, and smart financial strategies, you can:
✅ Avoid tax-time stress
✅ Reduce your overall tax liability
✅ Improve cash flow and profitability
💼 Need expert bookkeeping and tax help for your law firm? We specialize in helping attorneys stay financially organized and compliant. Schedule a call with us today!