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.
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.
0 Comments
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! 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! When you start your own business, it is common to make mistakes especially when it comes to accounting. Skipping small accounting tasks seems like it would save time, but it ends up costing time and sometimes even money in the future. It is better to get into a habit of taking care of accounting tasks early so they become less of an ordeal towards the end of the fiscal year. The focus should be clean, clear, and accurate accounting that will make your life easier. So, here are a few tips to help with your small business accounting. Separate your business funds from your personal funds. Even if your business consists of only you. Create a separate account for the business and the business only. This not only allows you to make your reconciliations and end of the year deductions easier, it also lets you keep close accounting of your cash flow. Many accounting professionals that work with small business owners will tell you that often they see the business owner not applying payments to open receivable accounts. It seems almost too simple to point out but it is easy to forget. Leaving receivable accounts open can cause major headaches down the road. Reconcile all your accounts as soon as the statement is available. This process will be much easier now since the rest of your records should be accurate. Not reconciling accounts can reduce the amount of deductions you will receive. Understand the tools and functions of your accounting software. Whether you are using QuickBooks or another software, understanding exactly what it can do and its limitations are important to making good use of your time. Read the entirety of Terms of Credit agreements. Reading long terms can be monotonous at first but It can save you money in interest and other fees. When first starting out it is easy to keep track of the small books you will be keeping. It is important to set up in a way that you can grow and scale without exponentially raising the amount of work you must put in to maintaining your books. You can set up automation in some online cloud based accounting that will allow your business to scale without you having to maintain all the accounting records by hand. Use this tips for your benefit to learn from the mistakes that others have made in the past. Professionals are always ready to help with high level expert advice for small business owners. 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/ |
AuthorThe Pathways Team Archives
September 2020
Categories
All
|