Helping Small Business Tax Preparation at Tax Time
Many of our clients run their own small business and have the added pressure of not only making sure they have their own finances in order, but the finances for their business as well as any employees they might have.
Advice for Small Business Tax Preparation
Our advice is to let the tax experts worry about all the ins and outs giving you the time you need to focus on your day-to-day business. While we recommend working with an expert, you also need to understand your taxes, and the tax laws, as you are ultimately responsible for providing your team of experts the information that they require to take advantage of all the deductions available to you.
When compiling your small business tax preparation, we strongly recommend compiling your receipts and any documentation at the end of each month… it will make your year-end compilation much easier! Here’s what you should be thinking about each month:
HOME OFFICE: Keep track of your basic expenses such as telephone, gas, internet,etc. Work with your tax team to determine the percentage that can be allotted as business use.
ENTERTAINING: Wining and dining current and potential clients is an important part of business and a valid deductible. If business was discussed during or after a meal you are able to deduct 50% of the expense. Please write notes on the receipt stating the client and the business discussed.
TRAVEL: You are allowed to deduct 100% of your travel expenses if the purpose was 100% business. Any additional expenses incurred for personal time may not be included in your expenses.
INSURANCE: One critical expense in conducting business is your insurance. If you have insurance (and you should!!) we can deduct the annual cost through your taxes.
BUSINESS PROPERTY (including equipment) DEPRECIATION: Accounting for depreciation in your taxes is very technical and should be left to the tax experts. Your property and business equipment depreciates over time and that is another unfortunate cost of doing business. For small business orders to be eligible to claim depreciation deduction for a property or equipment, they must meet the following requirements:
EVERYDAY EXPENSES: Keep track of your every day expenses (no matter how small) throughout the week, month and year. All the small expenses add up. Think about:
Let the experts handle your Small Business Tax Preparation
There are many other deductions that your tax team will recommend based on your specific business. While you are an expert in your own business, let our E&Y team be the experts with your taxes. We’d love to talk with you about how you can maximize your returns and meet filing deadlines. Our team offers year-round tax service with evening, Saturday & Sunday appointments. Call us today and start preparing now!
Call Us Today 248-671-6860 or email by filling out the form below: