Posts Tagged ‘business’

Who Sees Your Tax Documents?

May 5th, 2012 MReed

Now that April 15th has passed, most of us can breathe easy for a while.  After all, gathering the necessary materials to file your taxes can be exhausting.  It’s the kind of document management no one prefers.  Now you can file your tax return with the ones from past years and move on.  Just don’t forget about them.  You may need them for various things.

 

Buying A House

 

Many people will need access your tax documents for various reasons.  One of the most common reasons people need to see your tax returns is for a new home.  In order to qualify for the new home and get financing, people will need to see how much you make.  At this time, you will be glad these documents are accessible and easy to pass along to interested parties.  They could just help you get the home you have been dreaming of.

 

Audited

 

Another common reason your tax documents may be needed is because of an audit.  The IRS will most likely be the auditor in this situation.  However, it is also common for accountants to audit your past finances for court purposes.  Make sure to keep your documents on hand in case this happens to you.  Not only will you need the official returns, but you will also need backup information to support the return.

 

Legal Situations

 

In addition, there are legal situations that may require your tax documents.  There are many legal reasons for accessing tax information.  These documents are valuable in business legal situations.  They also take on new importance in divorce proceedings.  In addition, you may find them beneficial if you are drafting a will.

 

Take the time to organize your documents.  This way those who need them will be able to get the information they are looking for quickly.

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Can You Afford Your Business Taxes?

May 4th, 2012 MReed

Having a business can be extremely rewarding and very profitable.  You will need to factor in that business taxes will need to be paid at the end of each quarter. Some people do not think about that and end up with a huge bill at the end of the year that needs to go to the IRS and the state.

Managing Your Money Better

The first thing you need to do is take a look at how you are doing financially. You need to determine where you can improve with your finances and especially look at your expenses and your expense report. One of the things you always should look at is when you take payments via credit card what is your rate that you need to pay to the online credit card processing company. This information is extremely important because you might be able to get a better rate. Some businesses can get killed by high rates because they never see a profit.

Cutting Expenses

Take a good look at all of your employees and make a decision on whether or not they are earning their salary. Each of your employee’s salaries should be only a fraction of the money that each employee makes you. If you pay $30,000 to an employee then you need to be sure that employee is generating more money each year or the employee does not need to be there. It may be time for that employee to get laid off or you need to perhaps motivate the employee to do better work. A sales department should always be making money instead of losing money. You might need to lay off two or three employees and just stick to one until the sales are better.

At the end of the year you always should have your tax professional help you get prepared so that you know exactly how much money you are going to need to pay in business taxes. Always try to stay smart during the year and make wise decisions on your employees and how you spend money. You cannot avoid paying your taxes.

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What a Small Business Can Write Off

May 26th, 2011 MReed

A penny saved is a penny earned. Remember this motto when starting your own business. It can also be said that a penny written off your taxes is a penny earned as well. Save each and every receipt you have of purchases made for your business and always check with your bookkeeper to see if you can use them as a write-off. Since some receipts can fade in time, it’s also a good idea to record them in a notebook or spreadsheet as well, including both the date, type of purchase and amount spent. You’ll be glad you went to all this trouble at tax time, because the right amount of write-offs can save you huge amounts of taxes.

Common Write-Offs for Small Businesses

Although a bookkeeper or accountant is the best person to say whether or not an item can be used as a deduction, common write-offs for most small businesses include office supplies, payments of work outsourced, legal fees, charitable donations, utility bills for the work space and; in some cases, mileage to and from places where the work was performed. Promotional items and advertising costs can be written off as well – which means that you can spend your money wisely by investing in give-away items that showcase your business’ name and logo, increase your customer base and profits, while allowing you the chance to save money on your taxes as well. Talk about an excellent opportunity to make money and save money at the same time.

Promotional Items That Make Sense (And Save Cents)

Many items such as promotional pads, pens, coffee mugs and calendars are excellent ways of reminding potential customers about your business. Every time a person picks up a pen, uses a notepad, takes a sip of coffee or glances at the calendar; he or she will see your business and logo and become even more familiar with it. When the time comes for that person to need a business such as yours – you’ll be the first one he or she thinks of. This is particularly important since it’s a way for you to make more money with your business while at the same time saving money with your taxes. In most cases, you can write these promotional items off as deductions. Be sure to check with your bookkeeper or accountant to make sure, and then invest your money wisely by promoting your business with tax-deductible promotional items.

Posted in Business Taxes, Tax Advice Tags: , No Comments »
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