Tax Consideration When Setting up Business

Operating a new business can be exciting and at the same time costly.  It takes money to start a new business, but the tax advantages than can help offset those startup costs. As a new business owner you may feel overwhelmed in the beginning, add the IRS requirements and federal tax implications and things can become more complicated. Before you dive in head first, we suggest hiring a qualified accountant to help with book keeping and tax preparation by the Tax preparation services sunnyvale also. It’s enough in itself trying to learn the ropes as a new entrepreneur, that’s why we recommend hiring a trained tax accountant to help you as you get settled in.

Advantages :

 If you wish to take full advantage of being to write off some of your business expenses now would be a good time to get organized. Begin with tracking your expenses. As a business owner it’s smart to effectively track all of your business expenses. By doing this you can monitor the growth of your business, keep track of your deductible expenses, and prepare tax returns efficiently. If you are a first time “home” business owner you may qualify for some unique tax breaks. One advantage of running your business from home is that you can deduct the portion of your home used for business. You can also deduct your phone bill, internet connection, and any transportation needed for business errands. Be sure to hold on to those gas receipts as gas mileage is 100% deductible.

About Book Keeping:

Book keeping is important for the success of your business. If you decide to hire a bookkeeper, make sure they have knowledge in accounting as this plays an important role in watching the progress of your business. If you’re a small business owner you may wish to handle the bookkeeping on your own. If this is the case, you’ll need to decide which bookkeeping method to use. If you decide that bookkeeping is something you don’t want to tackle, we have trained Tax filing agent sunnyvale and Fremont to help you keep track of your business transactions, and reconciling your bank statements.

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How to Save Tax on Salary Income

 

Tax Tips to Lighten Your Load this Tax Season

 Taxes are an unavoidable part of life. It’s not always easy and definitely isn’t fun sitting down every year to calculate how much money you owe Uncle Sam. Just figuring out how to properly file your taxes by tax filing agent fremont , can be complex and stressful—you might not feel like you have the time or energy to look for ways to save on them. This is when you should turn to a professional tax accountant to ensure that you’re taking advantage of all of the ways to reduce the income taxes you pay.

There are a number of ways to lessen the annual taxes you pay in general.  If you have children, you may be able to get credit for the cost of their care, for putting money into college funds, or qualifying for the child tax credit. Saving money for your retirement via an IRA or 401 (k) is also tax deductible, as are eligible medical expenses. Charitable giving, above a certain threshold, can also lead to tax write-offs.

If you’re specifically trying to lower your income taxes, one of the first things you should do is see if you qualify for the earned income tax credit. Anyone making less than $50,000 a year may be able to take advantage of this credit. Many job-related expenses are also deductible. Travel to and from work, education that pertains to the job you do; even your home office may be able to save you money on taxes if it meets the right criteria. Like contributions to charity, expenses accrued while doing volunteer work can also be tax deductible.

By contacting an accountant, you can discover even more ways to make the ‘tax man’ go a little easier on your wallet. personal tax preparation service sunnyvale help the layman wade through the sea of red tape and confusing legal language that all too often surrounds the process of filing taxes every year.

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Tips on Tax Record keeping for Small Business

 

Now that you’ve started a business of your own, it doesn’t matter how small a business it is- you’ll still need to practice good record keeping skills. The success of your new business is dependent upon many factors including good record keeping skills. According to the IRS. It doesn’t matter how you keep records of your business receipts, as long as the accounting and business records are accurate.

You can manage your own record keeping, or you can hire a small business account. Whatever you decide you need to keep a record of all your expenses. You can choose record keeping the traditional way or hire a professional. A tax filing agent can also help you during tax season. The important thing to remember is a smart business owner will practice smart business keeping.

Technology has given business owners the freedom to do record keeping electronically via the computer. If you own an Android you can do your record keeping on the go. Using your laptop or android is quicker, efficient, and gives you more time to spend with family and loved ones. Whether you choose to do your record keeping the old fashioned way or keep up with the time, it needs to be done one way or another.

You might ask yourself how long you should keep your tax records. If your small business has employee’s it’s vital you keep their records no less than 4 years. To be on the safe side you might want to keep employee records up to 7 years. If you’re just starting out you may not be able to afford a book keeper right away. It’s in your best interest to learn all you can about basic book keeping. This is your business and you’ll want to do everything you can to keep it running smoothly and that means good record-keeping practices.

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