Here are the top five recurring recommendations we typically give our clients. Many small business owners are not aware of the tax benefits that are available.
- Keep Personal & Business Expenses Separate: You may think you are sneaky and can mix in personal with business expenses, but finance professionals know your tricks. Personal expenses are not tax deductible and that last thing you want is an IRS audit.
- Track Your Expenses Regularly: Sometimes business owners use personal credit cards for the rewards which is fine. Remember to track them and document receipts so you can benefit from the tax deductions.
- Utilize Retirement Contributions: You may not qualify for a 403(b) or 401(k), but you can open an IRA. Consult with your financial advisor to determine your best option. Planning for your future is vital.
- Avoid Penalties & Fees: Cash flow can be difficult for new business owners. Your vendors may not charge late fees, but the IRS does. Don’t make it harder on yourself. Make sure you stay on top of your expense and plan accordingly.
- Consult with your CPA: Ensure you are taking advantage of the tax benefits available to you as a business owner. For example, Section 179 which deals with fixed assets. When in doubt ask the professionals.
btg can help you monitor and manage your finances. From bookkeeping to financial reporting we are here for you. Contact us today, firstname.lastname@example.org.