Small businesses are more likely to get selected for an IRS audit, because many of them are unfamiliar with business tax rules and often conduct transactions in cash, which leaves more room for errors.
If you thought your business trips can be expensive, you need to think again. If you plan and strategize, the government can subsidize your trip so that your trip expenses are minimal. The idea is to combine your business travel with vacation time and document the time spent on business.
Your odds of facing an indirect tax audit are actually higher than the odds of IRS small business tax audits. That’s because while the IRS audits 2–12% of the tax returns filed with the agency every year, some states audit up to 20% of the business sales tax reports filed each year.
This weekend, more than a few small business owners will be scrambling to pull together the documents and information they need to meet the IRS deadline that’s coming up in just six days. Yes, there’s a tax deadline for quarterly taxes due to most states and the IRS on August 15.
Acquiring knowledge, having fun, and benefiting your business in a single business trip is ideal. Having your travel expenses eligible for tax deduction? That’s even better. If you attend conferences and conventions for your business, the government offers income tax deductions on the expenses that were incurred during the trip.
As a small business owner, would you like to be certain that at the very least you are not paying more tax than necessary, and that you’re making all the tax savings you can? Read on for top tips on how to lower your small business taxes for the next tax season.
Every tax-filing season, most Americans go on a quest to find as many tax deductions as possible. At the same time, many small business owners and independent contractors leave money on the table because they fear that certain tax deductions will draw the attention of auditors.
The bottom of your P&L shows profit—not cash. Remember that profits are not cash. Only the interest payment for loans is covered in overhead. There are also some non-cash expenses such as depreciation in overhead.
Accounting for a business is more complicated than just subtracting your expenses from your revenue. There are so many things to consider and monitor, which makes it a necessity for business owners to take advantage of all of the modern best practices for accounting.
Although it seems that tax season just ended, it is important to prepare for the future. Tax preparation is something every business owner should constantly keep in mind, and the 2014 tax season will approach quickly.
Small Biz Club is the premier destination for small business owners and entrepreneurs. To succeed in business, you have to constantly learn about new things, evaluate what you’re doing, and look for ways to improve—that’s what we’re here to help you do.