Three Valuable Tax Tips for Small Business That You Can Use Todaycustomonecfo
It’s never too early to prepare your small business tax filing for the IRS. Today, we’ll share three valuable tips you can use right now. Get ready for tax season with accounting firm CustomOne CFO & Controllers. If you have any questions, or you need a Des Moines CPA for your business taxes, contact us today. Enjoy the article!
Three Tax Tips for Your Small Business
- Keep Updated Accounting Records
When left unattended to, your bookkeeping can easily go off the rails. Keep track of how much revenue you’re taking in and where it’s coming from. Organize all your ongoing businesses expenses and keep your bills/receipts in a safe place. Have hard copies and digital copies of all your company financial activity.
It only takes a few hours each month for accounting, report filing, and general organization. Don’t wait until the last minute. Keep your financial records current by updating them on a regular basis.
- Know What You Can and Can’t Deduct
To save the most money for your small business at tax season, you want to take advantage of every deduction you can. Likewise, there are certain things you can’t deduct — and you don’t want to try unless you’re looking to get audited. Here are a few examples of tax-deductible and non-tax-deductible items for your business:
Deductible: Home Office, Equipment and Office Supplies, Section 179 Properties, Business Related Meals and Entertainment, Auto Deduction for Business Vehicles and Personal Vehicles Used for Business Activities (gas, repairs, mileage, etc.)
Non-Deductible: First Year Startup Expenses, Federal or State Income Tax, Capital Expenses that Depreciate, Commuting Costs, Club Dues or Membership Fees, Business Gifts over $25
If you want to be sure you make the most of your tax deductions, speak to the experts at CustomOne CFO & Controllers. A Des Moines accountant can help you save money from your business tax deductions.
- Never Mix Personal and Business Finances
This may be the most common and ruining mistake a small business owner can make. Intermingling personal and professional money makes for messy accounting. This leads to a nightmare during tax season — one that gets even worse if you’re audited.
Keep a company credit card and checking account that you only use for your small business. This is the easiest way to separate your business expenses from your personal ones.
Des Moines CPA CustomOne CFO & Controllers
We hope these valuable tax tips help you with your small business tax returns. If you want your Des Moines accounting handled by a team of professionals, contact CustomOne CFO & Controllers.