Small business owners have a special place in our heart.
We understand how much work goes behind running a business and how multi-tasking is your speciality when you own your own.
We also don’t want you making mistakes when it comes to your taxes, as it could cost you a pretty penny down the line.
The IRS recently issued common errors that are made by small business owners, and they include the following.
Mistake #1: Business or Pleasure?
We know, we know.. it is just soooo easy to use one credit card for everything! BUT! When you do, it makes it very difficult to tell the difference between when you used it for your own use or it was for your business. Then when it comes time to claim deductions, you do not know which is which.
PRO TIP: Get two credit cards. Use one solely for personal use and one solely for business expenses. This will make your statements legitimate records and take the guess work out later for which is which.
Mistake #2: Deposit Withholdings
When you have employees, you need to deposit the taxes that you withhold from them along with your share of the taxes. If you don’t, you could get a penalty.
PRO TIP: Set it up for an electronic fund transfer.
Mistake #3: Correct Estimations
When you own your own business, you typically make tax payments. If you do not pay enough for your estimations, you may be charged a penalty.
PRO TIP: Use us #GoldenGirls to ensure your estimated payments are accurate.
We know when you do things correctly, your business runs smoothly. And that’s all we want for you!
