Tax information for your business

Posted by Logan Marshall on August 25 in 0. PreBusiness Considerations |

An introduction to taxes.

Few of us need introducing to taxes as we all face them in one form or another numerous times every day, whether when paying for items or reading our wage slip. When setting up a business the issue of taxes can seem an incredible mountain to have to climb without a guide of some sort but even finding that guide can prove difficult enough. Tax return time is a worrying time for any business, even those that keep tidy and regular books; the IRS have something of a reputation for being concise and very, very accurate. Make no mistake you are required to pay taxes and you are required to pay the right amount at the right time.

Keep records.

The fact is that most small businesses fail their tax audits because of bad record keeping and not because of dishonesty. You need to hit the ground running and ensure that you keep regular and concise records on every conceivable transaction you make; no matter how small that transaction may be. Hiring someone to look after your books for you could prove invaluable but you should make sure that they are doing their job properly by keeping a close eye on them. If you ever pay for an item or service or you are paid for providing an item or service you have got to get and keep a receipt as well as details of the transaction in your books. Keep as much information as you possibly can; that way you know you will have the information you need when the time comes

Be prepared for the audit.

Tax audits are a nerve wracking time for any individual company; even if you have diligently kept records and updated the books you are still convinced something will be wrong. Preparing for the audit is the most efficient way to make it run smoothly. Prepare your receipts and books in a neat, legible and logical manner that you can understand and explain to the auditor. For all of yoru deductibles have your case set out and ready so that you don’t stutter and fail at giving a reasonable explanation of the reason you believe a deductible should be deductible.

A guide to deductibles.

Many small businesses struggle to come to terms with exactly what is a deductible value. Basically anything that is used for the running, maintaining and improving of your business can be classed as a deductible. Even if this a stereo in the office, that would be a deductible. If you use your car for business, then the business use of your car and maintaining the vehicle may be tax deductible. Education, legal fees, professional fees and even entertainment costs (both of clients and staff) have levels of deductible values against them so always keep receipts.

http://www.sizzly.com/offshore-banking-online-business-know.php – Articles regarding all matters tax and small businesses.

http://www.irs.gov/ – The IRS really doesn’t need any introduction.

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