For new business owners and sole proprietors, it's so easy to forget or not even known about all of the best deductibles and write-offs for your future tax season. So here are some of the best tips and hints and what you can look forward to writing off come April 15th!
April 15th. It's a day that goes down in infamy once you're proudly bringing home your first paycheck or have opened your own business or have become a sole proprietor. Even though it's still 9 months away from when we all have to open our wallets for Uncle Sam, taxes don't have to be as painful or as costly to you or your business as you think. We get it - taxes aren't your favorite thing. So to ease the pain between now and April 15 let's talk about something a little less painful - your tax write-offs and deductibles!
Those glorious write-offs can cut your taxable income and cut down on what you end up paying for your taxes come tax season. But are you writing off everything that you can? Do you know just how much you can track and write off every year to make sure you're getting the financial break you and your company deserves? Let's break down what exactly you can write off - and how you should be keeping track. Federal tax laws can be a bother and can get in the way of what you think you can write off and what you actually can. Tax code and Tax law does change a little every year, so there are loopholes and certain things that will affect how, how much, and when you can write off certain things. When tax season does come around, make sure you, your tax advisor, or your Quickbooks extraordinaire takes the time to research the new tax code for the year. This list covers the big write-offs - and a handful of others that you might not know about. A lot of the time the more unknown or forgotten write-offs can be some of the most lifesaving and profitable at the end of the day. Make sure you're keeping track - and reading the small print.
Our first recommendation is to keep track of everything for your company. Quickbooks is a simple and easy tool that can help you track all of your project probability, manage bills, track your mileage, keep track of your income and expenses, help you manage your invoicing and payments, manage your contractors, and of course - pay your workers. It's simple, efficient, and can take the headache out of tax time. You will also be a star employer if you get your taxes finished sooner than the cut off date. The faster you do, the faster that tax return can get back into your pockets and the pockets of your employees.
The first general idea to keep in mind when you're just beginning and making plans of what you're going to be writing off this year, your write-offs HAVE to be something that is always used in your business industry. Once this is established, don't forget to keep and track your records. There are TONS of amazing apps and programs that can help you stay organized. Did I mention how amazing Quickbooks is and how they can do all of that for you?
TOP WRITE OFFS FOR SMALL BUSINESSES!
Next up: Things you think you can write off, but actually, you cant!
Why Use A Professional Tax Service For Your Business?
When it comes to filing taxes for your business, you don’t want to end up with mistakes and money lost. To ensure a proper filing process, using a professional tax service is recommended. At Pathways, instead of just filing your taxes for you, we try our best to help you understand your taxes thoroughly. So, how do you file taxes for a small business, and why is it important to use a professional?
Keep All Records
Record keeping is the most important step in the tax filing process for businesses. If there is no record, it never happened, and therefore makes it much more difficult to get correct information. In the process of keeping data, we suggest using a bookkeeping service like Quickbooks to store information used within the filing process.
Use The Correct Form
It is important to know the differences between the tax forms and which is appropriate for a business. The form most used for small businesses is a Schedule C or Form 1120. Schedule C is a simple form that is easier to calculate and input information.
Deadlines are Real
To make the filing process the easiest, be aware of the filing deadline for taxes on small businesses. We are very serious when it comes to this because of the repercussions that may occur due to late filing.
Pathways is here to help your business breeze through tax season, so why not make your appointment today?
Here are a list of questions to ensure you find a great accountant to fit your needs!
Accounting Facts 1: ComputerCompter
was the original word of accounting. It was a derived from a French language. The meaning of compter is to count or score. The p letter on compter was dropped on the pronunciation and spelling of over the time.
Accounting Facts 2: record keeping
The people who were obsessed with record keeping were the ancient Romans. The military bases of roman always recorded the number of grains or even nails that they use and have in the workshops.
Accounting Facts 3: Luca Bartolomeo De Pacioli
Luca Bartolomeo de Pacioli wrote the first book about double-entry accounting in 1494. He was an Italian mathematician and Franciscan friar. This man is called as the father of modern accounting because of his book.
Accounting Facts 4: 19th Certified Accountant
In 1896, New York State issued the first certified public accountant exam.
Accounting Facts 5: FBI
The law enforcement cannot be separated from accounting. You may be surprised when you know that FBI has 1,400 accountants as their special agents.
Accounting Facts 6: Walter Dimer
Walter Dimer was an accountant who invented a bubble gum in 1928.
Accounting Facts 7: Al Capone
Some FBI accountants brought down Al Capone in 1931. This Chicago crime boss was charged of income tax evasion even though many people believe that he was subjected to crime such as murder and bootlegging.
Accounting Facts 8: celebrities
There are various celebrities who began their career as an accountant. Some of them include WWE wrestler D-Lo Brown, Chuck “The Iceman” Liddell, comedian Bob Newhart and jazz artist Kenny G.
Accounting Facts 9: Accounting Study
Before their big time, there were some celebrities who studied accounting. Some of them include singer Jane Jackson, lead singer of Rolling Stones, Mick Jagger and author John Grisham.
Accounting Facts 10: Academy Awards
Accountants are needed in Academy Awards. Prior to the Oscar night, the accountants will spend their 1,700 hours to count the Academy Award ballots manually.
List made by http://www.myinterestingfacts.com/
The Pathways Team