What Entrepreneurs Should Know About Taxes
Understanding taxes as a small business owner is like knowing the rules of the game to keep your business financially healthy. It can be overwhelming when you think about all of the steps you need to take in order to get your taxes taken care of.
So, let’s simplify it:
Think of your business records like a super-organized backpack. It helps when you need to show what your business earned and spent during tax time. Tracking the monthly expenses you have ensures you that have a pulse on your business and its growth, and not be overwhelming to you.
Just like you keep track of your own spending, businesses track their spending too. Knowing what you can deduct—like a home office or business trips—saves money when it’s tax time. Take the time to understand what deductions your business qualifies for. Understanding your Cost of Goods is important not only with taxes, but your bottom line. If you can’t measure it, then it’s difficult to know if you are making a profit.
Tools like accounting software or hiring a professional are like having a homework helper. They make tracking your money easier, reducing mistakes and ensuring you don’t miss deductions. Make sure your tax professional understands the type of business you have.
Tax credits are like bonus points. They’re like finding extra money for your business. Research and find credits that fit your business, like the Small Business Health Care Tax Credit. Did you know that many people do not fully utilize tax credit? Not knowing can decrease your profit margin and increase your tax liability.
Paying taxes isn’t a one-time thing. Small businesses often pay taxes every few months, preventing problems and keeping your business running smoothly. Stay up with it, you will thank me later.
Having a tax accountant or certified public accountant is vital to your business’s longevity and success. They know all the ins and outs of the tax code, saving you time, money, and making sure you follow all the rules.
Stay informed about deductions, keep your records organized, explore tax credits, understand payment schedules, and get advice from pros. These steps ensure your business is set up for financial success.
Albertjohn DePalantino CPA
Albertjohn DePalantino & Co PC – Certified Public Accountants
19 Short Road Doylestown PA 18901
215.345.0433 | 215.345.0483 | 215 416.0120
ad@depalantino.com | www.depalantino.com
Networking Associates of Bucks is a community-based networking group that meets every Tuesday at noon at The Waterwheel Tavern in Doylestown, Bucks County, PA. Check out our members HERE. Reach out to join us for lunch and see if we’re a good fit – the first lunch is on us!