Surprising Unknowns for Small Businesses

9/22/2019

You know a lot about the taxes for your company, but there still might be some unknown surprises along the way.

There are black and white things you know about taxes, preparing them, and paying them. But as a new or experienced small business owner, there might be some things you didn't know about your taxes. As we enter the fourth fiscal quarter of this year, keep these possible unknown facts in the back of your mind. This might prepare you for possible painful surprises or surprise you with some relief.

The Future Looks a Little Murky
- A lot of tax rules expired at the end of 2017 and weren't extend into 2018. Thanks to this fact a lot of technical corrections to the Tax Cuts and Job Acts are waiting to be put into place, or not. Congress is also still working on tax challenges and decisions that could affect and impact your 2019 taxes. If you don't have someone who prepares your taxes for you and you don't have an adviser, now might be the time to change that. Staying on top of tax laws can be a full-time job. It might be time to seriously consider Pathways to help with your taxes this tax season with so many unknowns ahead of us!

Put The Money Into It
- Thanks again to the Tax Cuts and Jobs Act, the number of small businesses that use tax preparers is over 88%. But, also because of this act it is now going to be costing more to hire a CPA and paid preparers. This is because more time will be needed to prepare and complete new forms. You will be using their services for much longer periods than you have before due to this new paperwork and their needs. You could be using their services for weeks or months longer than normal, or be using them throughout the entire year, all depending on your tax needs. Even if it does cost you more, invest in it. It is less likely that mistakes will be made on these new tax papers and forms with a professionals knowledge, you could receive better tax breaks and returns thanks to their skills, you'll be saved from a headache, and you'll be saving time. With all of these new changes, it takes more time to complete all of your taxes. Instead of using your time to do this, and possibly decrease production and productivity in your company, invest in the professionals.

Did you know that there are about 28 million small businesses in the USA? Of all of those, about 22 million of them are made up of only one employee!

Make More? Owe More.
- Small businesses could be facing a rise in the percentage that they will be paying come tax season. Yikes. Thanks again to this new foggy future of tax law. Individuals making between $200,000 to $425,000 yearly are likely to see a rise in taxes between 35 and 37 percent. This could harm and impact small businesses, their owners, and their employees. Be prepared for this possible rise in taxes in your budget and expectation of what you could be spending. If it turns out that this rise isn't happening or if it doesn't affect you, you can use that money somewhere else. But wouldn't you rather have those funds on hand just in case than not?

Counting on Location
- A lot of small businesses are operated out of the owner's home. This is sometimes the business's largest asset and allows the business to borrow capital for the company, sometimes in very significant amounts. It is projected that real estate prices are going to fall between 5 and 10 perfect in the coming year, lowering the worth of the small business owner's home/office. This could hurt the opportunity to borrow capital against the owner's home if being able to borrow any capital at all.

So, what did you think? Were any of these a shock or a surprise? With an unknown future and a lot of changes that are a possibility, is your small business prepared? Do you have someone helping you with your taxes, or have you been using Quickbooks to help you prepare for whatever might come your way? With the knowledge of these facts, always know that Pathways is here for you with any question you might have. We are here to help you come tax season and in any season.

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Quickbooks Commonly Asked Questions

9/2/2019

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Quickbooks is the amazing software that we recommend to all of our clients and what we use ourselves to do taxes and keep all of our finances in line. But for those who are still new to the program, here are five of the most commonly asked questions answered for you to get started!

We can't say enough how amazing Quickbooks is, and the reviews alone and it's personal success speaks very highly for the product. The installation of the software does take a little time but it is worth it. The software is proven to very stable and reliable. It is also a huge time saver for you and your business. It saves time on bookkeeping and paperwork because a lot of this work will now be done automatically thanks to this incredible software and all that it can do for you and your company!

It should also be a relief to you that you can constantly find out where your company stands if you are making or losing money and if you are in a healthy place or not with this software. Also, when it comes to all the financial software that's available for you to use for your small business, it is incredibly affordable. You can run your company on this amazing software for only a few hundred dollars. It is also totally customizable for what you want and how you want to use it for your business. It is very flexible and adapts to small businesses of all kinds.

We could go on and on about why we support Quickbooks so much. But don't just take our word for it. Here are five of the most commonly asked questions answered for you, so you can really see how incredible this software can be for you!

1. Is the Cost of Quickbooks Tax Deductible?
Yes it is! It is tax-deductible according to IRS publication 946 which says "off the shelf computer software is qualifying property for the purposes of the section 179 deduction." So don't be afraid to buy this for you or your small business, you can write it off at the end of the year. And who doesn't love a program that will help your busy grow and it will save you money?

2. Can I add my Accountant, Bookkeeper, or Tax Pro?
You sure can! You can invite an accountant or any of your bookkeepers or Taxpros to collaborate with you for free with Quickbooks online. Once they accept your invitation to collaborate, they can work in their accounts on their own time. If you part ways with any of these persons, you can also deactivate their access at any time as well.

3. Is Phone Support Included?
Phone Support is offered to you during the free 30-day trial Quickbooks offers you when you first sign up and is included with your paid subscription to Quickbooks online. For you to have Phone Support for Quickbooks online, your account must be current. If you are more interested in the Quickbooks Desktop Pro version, phone support is offered for an additional $89 for 90 days after you purchase the software.

4. There is no contract, correct?
This should be a sigh of relief for you. No, there is no commitment or contract. You can switch between plans whenever you would like to and you can also cancel any of your subscriptions at any time. The online version of Quickbooks even offers a free 30-day trial for you to try out the program and see if its a fit for you. If you end up buying the desktop version, there is a 60-day money-back guarantee.

5. Is it easy to get started? If you have five minutes, then you have enough time to get started. Five minutes is all it takes to get up and running with Quickbooks once you sync all of your bank or credit card transactions to Quickbooks online. It will take a little longer to download the desktop version, but as mentioned above it is worth the time it takes to do so.

We hope that if you have been considering using Quickbooks, that this will finally convince you of its potential. If you have any questions or would like more tutelage for this software, please feel free to contact us!

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