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Tax Tips For Small Businesses

By: Jay Murton

[ Posted On: 2009-08-25 ]

It is vitally important to keep accurate records all year long. Any undocumented expense will probably be disallowed, if the IRS happens to scrutinizes your tax return. The small business owner should keep all of his receipts, canceled checks, bank statements, and credit card statements. Invoices and receipts are verification of precisely what your company purchased and the date of purchase. The credit card and bank statements, plus the canceled checks are verification of the actual spending.

It is important for the small business owner to have a place to keep paperwork and sort through it on a regular basis putting expenses that are similar together. Then he should total his expenses.

The IRS has specific regulation requirements for records concerning listed assets. These are things that can be used for business and personal needs. Some of these things are cars, computers, cell phones, and audio systems. For example, a computer used for business that is located in a home requires a usage log and a car requires a mileage log.

Utilizing some end of the year tax tips strategies can earn large dividends for the small business owner. The business owner can increase tax deductions for the current year by increasing expenses. In other words, buy any items at the end of the year that can be used in the first quarter of the following year. These items may be office supplies or something else the small business owner uses regularly in his business activities that have to be replenished periodically.

Buying equipment at the end of the year is another tax tip, if the owner was planning to buy soon. Consult your accountant about your business situation and structure to increase your deductions. Find out if deducting all of it immediately or spreading the depreciation through several years is better.

Paying bills like cell phone services, insurance, utilities, travel bookings, maintenance, repairs, and rent early well help with your taxes. It may be good for the small business owner to take advantage of inventory write-offs by deducting for damaged goods and obsolete items. This is dependent on the accounting system used.

The business owner should keep all tax documents for seven years or more. It is best to save copies of business tax returns, capital equipment expenses, licenses, incorporation paperwork, and capital equipment expenses as long as the business exists.

There are certain tax dates the small business owner should be aware of in order to fulfill tax regulation requirements. These dates are the annual return April 15th, and estimated taxes April 15th, June 15th, September 15th, and the 15th of January. The employee taxes are due weekly, monthly or quarterly. This depends on the payroll size.

To obtain more business tax information the business owner can visit the IRS small business site. It includes information about business structure, tax deductions, and employee taxes. It also presents a checklist for handling a small business. It list other helpful government resources for small businesses to utilize.

Article Source: http://www.afroarticles.com/article-dashboard

About The Author: Jay Murton is a well-known business writer who has been active in the business community for more than thirty years. He is currently exploring Equipment leasing opportunities . See more articles about Ten Equipment Leasing Tips.

| View Profile & All Articles By: Jay Murton |

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