5 Tax Tips for Small Business

How Can You Reduce Your Tax Liability? Always Check Your Payroll-- If you have employees or if you are the only employee make sure your payroll information is correct. Pay close attention to payroll deductions, and pay them on time. If you are the only employee make sure you pay quarterly estimated taxes. It is often difficult to determine income beforehand. Check past records and keep all information in a safe place. Keep Track Of Your Travel Costs--If you use a vehicle for both personal as well as business, keep a record of use for business. Record all business calls, business trips to either deliver or pick up material, client entertainment visits or any other use of the car for business purposes. This will allow you to accurately deduct all the operating cost involved in the business use of the car. Keep Track of Meals and Entertainment Costs--If you entertain clients for business purposes make sure you keep the receipts for meals purchased. It is a good idea to write a note on the back of the receipt. The client you meet with, and the purpose of the meeting. The front of the receipt should already have the date and the place of the meeting. Keep Canceled Checks --When you write a check for a business expense, make sure you keep the canceled check. The cancelled check will provide any information that may be needed for tax purposes. Always include a note in the memo section of the check and record that memo when the check is written. Track Any Charitable Contributions--If your business makes charitable contributions, make sure you keep records. Most non-profit organizations are able to provide a receipt or statement of your giving. Make sure these statements and receipts are kept in the event a contribution is questioned. Want More Tips Call Us!