tax deductions

Unexpected Tax Bill? Survival Tips and Advice for This Year

By | Accounting 101, Bookkeeping 101, Business 101, Taxes | No Comments

This episode of Ask Connie is a question that comes up often when I talk to business owners, especially this time of year – tax season: I was shocked about my tax liability and am struggling on how to pay for that and not have that same situation happen next year. Perhaps I need to relook at my tax entity. Perhaps the tax professional made a mistake. Perhaps I should move. What do I do next? I have even had this question come up for myself in prior years, so I felt it was important to explore the question a…

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Business 101: Planning for Profit and the Tax Man

By | Bookkeeping 101, Business 101, CEO Mindset, Profit First, Taxes | No Comments

During a recent conversation with a client, the topic of tax payments came up. Of course, the first tax deadline of the year just occurred so this topic is top of mind for many. There is no way around owing tax and in fact, you could choose to view it as one of the score cards for your business. Tax owed = Congratulations, you have created a profitable healthy business No Tax owed = Great! Consider this the starting point for creating a profitable NEW Year A normal comment I hear from clients is: “there isn’t any cash available, how…

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Tax Deductions: Business Travel

By | Accounting 101, Bookkeeping 101, Business 101, Recordkeeping 101, Taxes | No Comments

The IRS on travel expenses: for tax purposes, travel expenses are the ordinary and necessary expenses of traveling away from home for your business. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your business. An expense does not have to be required to be considered necessary. In an earlier post  we discussed what the IRS recognizes as adequate recordkeeping. Keeping your receipts is necessary and you’ll need to document a few items on the receipt and in your accounting tool. IRS requirements…

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Business 101: 5 Common Accounting Mistakes

By | Bookkeeping 101, Business 101, CEO Mindset, Recordkeeping 101, Taxes | No Comments

Around this time of year, when businesses are pulling their year-end info together for tax prep, is when the most common business mistakes start showing up. This post covers the five most common accounting related items we cover with our clients. While there isn’t time to correct any of these mistakes for the prior year (sic: 2014), there is plenty of time to incorporate them into this new tax year. Demand a change to stop the insanity that happens during tax time by implementing the following five actions. Treat Your Business Like a Business There is no more mixing personal…

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Tax Deduction: Home Office

By | Bookkeeping 101, Business 101, Taxes | No Comments

As the economy fluctuates and technology improves, more and more businesses are finding that working in smaller offices or from home offers a much lower overhead.  In response to this changing environment, the IRS opted to update their office in home deduction in 2013 to a simplified option.  Criteria for a home office didn’t change, only how to do the calculation and the recordkeeping requirements. Before we get to the new simplified option, there are two basic requirements that your home must meet to qualify.  If you have any questions about these, we recommend that you connect with your tax…

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Tax Deductions: Business Auto Expense

By | Bookkeeping 101, Business 101, Taxes | No Comments

Part of the business year-end wrap-up includes gathering info in regards to business use of your auto. Whether you used either a business owned vehicle or your personal car, you need to collect and calculate your mileage. To do this, the IRS wants a log that includes the date, starting mileage, ending mileage, and purpose of travel. Seems simple, but yet every year it is the one thing most of the business owners we have worked with struggle with year, after year, after year. Getting a simple, doable system in place can get you back on track to take advantage…

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Recordkeeping 101: Paper vs. Scans

By | Bookkeeping 101, Business 101, Taxes

Receipts to a bookkeeper are gold; to a business owner a pile of anxiety and nuance; and to the IRS a legal requirement. Naturally, as a bookkeeping firm, we are going to write about how easy it is to keep your receipts and go paperless – we love receipts!  For business owners that have an opposite opinion around receipts there is no magic pill or tool to change that.  Instead we need to look at your personal “nature” when creating a plan on how to adjust your mindset that creates a process to work with your behavior, not against it….

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Recordkeeping 101: IRS Receipt Guidelines

By | Bookkeeping 101, Recordkeeping 101, Taxes

Recently we encountered a couple of articles on how the IRS denied taxpayer deductions because the owner could not provide proper documentation.  While the taxpayer presented canceled checks, spreadsheet or credit card statements, this proved use of funds but without the receipts there was no way to prove ordinary and necessary in the operation of the business.  Let’s establish what is adequate business records based on the IRS definitions. Definition Receipts = physical or email notification from a purchase made by check, cash or credit card.  To a business these should be treated like GOLD, especially if you pay cash. …

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Recordkeeping 101: 5 Tips to Eliminate Year-End Anxiety

By | Bookkeeping 101, CEO Mindset, Recordkeeping 101, Taxes

As the calendar page turns to show us it is December – which, by the way, happens every year – we see and feel the anxiety levels start to kick-in for business owners and their tax professionals.  (Yes, even tax professionals get anxiety)  Wouldn’t it be great to change this annual occurrence of anxiety with just a few simple steps? Your anxiety can be eliminated, if you choose now to implement these five steps.  How different would your business be IF…. Your recordkeeping is current and ready to hand over to your tax professional by the first of February No…

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Getting Ready for Tax Season

By | Accounting 101, Bookkeeping 101, Business 101, CEO Mindset, Taxes

Yep, it is getting to look a lot like tax season, a special time of year.  Fa La La La – perhaps we’re the only ones that jump straight to a Christmas song, did you? But in all seriousness, let’s look at a few common things that come up around this time of year with regards to tax season. First off, we do want to mention that we understand, as business owner ourselves, that getting ready for tax season isn’t sexy or fun or even remotely appealing to most people. However, what can be sexy and fun and appealing is…

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