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!
It’s tax time, everyone. If you own a small business you know what that means. It’s time to gather everything you’ve organized and take it to the experts at Pathways! While we love taking care of all your tax needs, we also love educating you on what’s going on with your taxes. For small businesses. The Tax Cuts and Jobs Act is upholding it’s promise to reform the way we handle taxes.
For small businesses specifically, this bill enacts a multitude of things like cutting the corporate tax rate, and strengthens 179 deductions. But what else does it do?
If your business is considered an S corporation, a sole proprietor, or partnership, your income tax will be lowered by 20% with the new reducing of pass-through taxes.
It gets rid of the AMT that used to be applied to businesses completely! (How exciting, right?).
This bill also reforms international taxation, making it to where the income is only taxed by the laws in the place they reside.
However, while this bill mostly has wonderful changes that are exciting, it also repeals the business entertainment deduction. Meaning, all those entertaining activities work provided with a 50% deduction no longer exist. At least they are still qualifying business related meals!
If you are a small business owner in the low country area, why not take your taxes to the experts here at Pathways Consulting? We will handle all your tax needs, so what are you waiting for?!
The Pathways Team