Do you do it yourself? Did you hire somebody to manage this for you? Any tips or recommendations? I'm considering hiring an accountant this year, but curious what other indie hackers of profitable businesses are doing.
I hire an accountant because there's a ton of financial bureaucracy in Israel where I'm from. I keep track of my payments with the free https://waveapps.com. It has a convenient UI and is pretty straight-forward to use.
I collect receipts in a Google Drive folder which I share with my accountant, so it's not much of a burden on me.
My advice would be to always use an accountant/bookkeeper, and preferably not an automated service, if you can. You want your books to be squeaky clean, this avoids unpleasant surprises and is a good rule in general.
I use a bookkeeper I found on UpWork. Went through a few of them before landing on this one. He's great, so if you need a recommendation reach out.
At the end of the year, I have an accountant who looks over the books and files the returns.
I used Taxfyle to handle my business and personal tax filings last year (had some complex equity issues that needed an accountant). It worked pretty well - I'd give it a try. For transactional taxes (sales tax/VAT) probably better to use a service like TaxJar since the lawas can change pretty frequently.
I had a freelance bookkeeper plus accountant (for legal annual accounts) from the early days. Managing numbers are not my thing and would just fill me with stress.
If you don't like doing taxes, hire someone else.
I have moved most of my side-projects into an LLC that covers everything and all the money goes through that LLC, it has it's own bank account, and I do monthly accounting using an online app (there's a few choices, quickbooks, xero, wave).
By categorizing things each month, I know exactly what buckets to put in my tax planner that my accountant gives.