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!
Our team at Pathways Consulting understands running a small business takes more time, money, and energy than expected. From payroll to taxes, there are multiple behind-the-scenes tasks you will be faced with. Our team wants to share with you a few tax ideas to get your business taxes under control!
Let's start off with the basics: Always report and claim the income your business earns. While this may seem simple and something you would always remember, there are cases where forgetting this occurs. Make sure this is not your business by claiming 100% of your income made.
Always Keep Your Records
Keep track of your business’ paper trail by keeping records. This means keeping up throughout the entire year, not just waiting until tax season to get things organized. Not only could negative consequences occur due to lack of organization of records, but you could also be missing possible deductions!
Be sure to classify your company as the proper LLC, corporation, or sole proprietorship. Understanding the classification of your business will assist you in preparing and filing your taxes to the IRS.
Understand Net and Gross Income
Make sure that what you are selling is not costing you more to create. Often times small businesses do not take into consideration the difference between net income and gross income. If something is costing you more to create, you may not be profiting as much as you believe you are. Take into consideration the expenses you pay while creating your product.
While these are just some tips on how to keep your small business running efficiently, Pathways Consulting is here to answer any questions you may have regarding taxes. Contact us to get your answers!
Individuals who are either sole proprietors or S corporation shareholders will benefit from making estimated tax payments. Another great key to estimated tax payments is that if a corporation is expecting to make $500 or more when their tax return is filled.
Some do not have to pay estimated tax, however. Those who meet the following three requirements will fall into this category;
For those who must file estimated tax, form 1040-ES is helpful in figuring out what the amount will be. The calculations include the expected adjusted gross income, taxes, deductions, taxable income, and credits for the year. It is always a great idea to use the information you have of the previous year's taxes to assist you!
Now that you know what needs to be added together, when do you pay your estimated taxes? There are four payment periods with online payments, phone payments, or mail payments. Electronic is always the easiest.
If you need assistance in understanding, completing, or filing your estimated taxes, we are here to assist you! Schedule an appointment to meet with one of our tax experts!
No one wants to be in debt, especially those within the world of small businesses. Debt, secured or unsecured, can cause frustration, high tension, and anxiety. If you are a small business owner and are experiencing debt, there are ways to overcome it.
The first step in eliminating your small business debt is to rework your budget. Figure out what you need to be spending money on and what can wait.
Secondly, look over your expenses and reduce where you can. Are you spending money unnecessarily? Make a note to stop spending money on it in the future.
Often times, the problem is access to a line of credit. Begin paying for things your business needs in cash to help yourself be mindful of expenses.
Decrease your debt by having a conversation with creditors and lenders. By talking with them, there is a possibility of learning ways by which you can lower your interest rates.
Create a reasonable and manageable repayment plan. Keep in mind the interest on the amount, and pay off the debt as best you can.
Debt, while frustrating, can be controlled and paid off. The team at Pathways Consulting believes in you as you reach a no debt future in your business!
Although tax season is behind us for this year, tax organization for next year has begun! At Pathways Consulting, we know of an awesome way to keep all your tax information organized and safely stored for when you need it months from now. We have discussed it before, but it's such an awesome tool, we have to talk about it again!
QuickBooks, the easiest way to organize your taxes for your business! This platform does so much for your business such as tracking income and expenses, invoice organization, increase and maximize tax deductions, and much much more!
Pathways Consulting has team members knowledgable in QuickBooks and are willing to sit down face-to-face to explain the amazing ins and outs of this software. It is one of the best tools you can use for your business, and what a better time to begin the learning process than right now! If you are interested in learning more, contact the Pathways team today!
Owning a business can be difficult, but nothing makes it more difficult than tax season. While everyone is jumping for joy that this year's tax season is behind us, there is still a lot of helpful information to keep in mind for next year!
We will be discussing a few tips small businesses can implement in order to make the next tax season the easiest one yet!
Never throw away a receipt. The receipt you throw away might have been your ticket to a deduction or your only piece of evidence for a business purchase you need.
Employment tax records should be kept within a business filing system for at least four years.
If by chance you omitted income from your return, keep records of that omission for at least six years after.
To make the process easier, there is a way to go paperless. Quickbooks is an easy way to store business tax documentation and employment information. Learn more today by reading our other blogs on this topic.
Pathways Consulting wants to make your tax season as easy as possible every year. If you have questions, contact us today!
Before we begin this blog, we want to say just how much we have appreciated everyone's business these past few months. The rush of tax season was felt by not only us but all of you as well. We wanted to say a quick thank you for choosing our business to help with your taxes. Thank you.
Now that this tax season is behind us, we figured it would be a great idea to discuss how to keep your business' information organized to make next year's tax season easy and stress-free.
Organize That Data
We know we always say it, but we really mean it when we say that organization is key when it comes to making tax season bearable. Luckily the technology age we live in has created a wonderful and easy way to store your business' tax information digitally through QuickBooks. We have discussed this wonderful service before in past blogs, and encourage you to read through those if you have yet heard about this great tax tool.
Know Your Tax Rate
Depending on how you have registered your business with the government determines what forms you will use to file when the time comes. This will also affect the tax rate of your business, so keep that is mind as well.
Although these two factors may seem easy enough, they are very important with keeping ahead of the tax game. As always, our professionals here at Pathways Consulting are willing to help and answer questions you may have regarding taxes for your small business!
Do you wonder if starting a business is the right career path for you? When making this decision, there are many aspects that need considering. Such as;
This is a design for the successful operation of a business, identifying revenue sources, customer base, products, and details of financing.
Platforms create communities and markets with network effects that allow users to interact and transact.
A Business Plan can be a written document describing the nature of the business, the sales and marketing strategy, and the financial background, and containing a projected profit and loss statement.
Strategies in marketing are normally a business's overall game plan for reaching people and turning them into customers of the product or service that the business provides.
These are inclusive of all the papers you need to complete your taxes when tax time comes along.
Your Personal Traits
Ranging from your personality, your ability to talk with others, and how you run your business!
It seems like quite a lot, but that is why SCORE is hosting a workshop for aspiring small business owners in Charleston, SC at the Main Library on Thursday, April 4th, 2019! Entry is free, and knowledge is priceless!
For more information and Directions, Click here to view the original post on the Journal Scene Website: https://www.journalscene.com/events/#!/details/Are-you-Ready-to-Start-a-Business-SCORE-Workshop/6246394/2019-04-04T18
Running a business can be a fun and amazing experience, but come April, it has the potential to turn into a headache. Don’t let that be you! Pathways Consulting is here to help you manage your small business taxes so you don’t have to do it alone!
When it comes to having a small business, it is best to keep record of everything! When keeping these records, and we can’t stress this enough, keep them organized! Organization is going to help when you need to get all those documents together and bring them to our office.
Each business’ taxes will differentiate based on how you have set your business up legally. Researching what this means for your business can make the process much smoother.
The types of business taxes are listed on the IRS website, where you can click and explore here: https://www.irs.gov/businesses/small-businesses-self-employed/business-taxes
You don’t have to take taxes on alone! Come by Pathways Consulting today!
Running a small business can be stressful and time consuming. It can also be difficult to keep organized, especially records you will need for filing taxes.
The advantages of keeping great records of your small business are as follows:
Project Tax payments
Keeping records will assist you in estimating the payments you may end up paying come tax season. This can be used to pay tax on income, such as the ones listed on your tax return.
Preparing Tax Returns
Keeping tabs on the reports that state business income, expenses, and credits will assist you on your tax returns. These will also help create your financial statement.
Keeping Track of Deductible Expenses
Keep ahold of all receipts you received after making expenses that can be considered deductibles.
Prepare Financial Statements
You want to make sure you are preparing accurate financial statements. Be sure you are including income that was gained and lost on balance sheets.
Monitor your Business’ Progress
In order to show how well your business is doing over time, you will need to have kept great records of the progress your business has made so far. Be sure to include the changes that are being made.
Pathways Consulting wants to help make your small business shine! If you have questions about record keeping, taxes, or anything else, please contact us!
The Pathways Team