10 Questions Entrepreneurs Have About Business Taxes! – Part 1

 

If you are a business owner, you may probably have different questions concerning business taxes. We are rushing to bring you good news, since your day is finally here. You do not have to pay money for getting answers to your questions, since Prestige Auditors are going to answer all your questions concerning taxes and more.

 

Question #1 What Records Should I Keep?

If you want everything concerning your taxes to go by the book, the first thing that you should keep in mind is keeping track of your records. The main reason is that when you have all the necessary records at hand, you should not worry about an issue such as an audit. Generally, the list of these records consists of the following documents:

• Financial Statements
• Balance Sheet
• Cash Flow Statements
• Income Statements
• Bank Statements
• Credit Card Statements
• Receipts
• Payroll Documents

In reality, there are far more records that you should have at hand. You can contact our team and we will gladly answer all your questions concerning these records.

Keep in mind that the IRS has a time-frame designated for certain records; therefore, you should keep each type of record for a certain period of time.

 

Question #2 How I Can Prepare for the Tax Season?

Tax season is a crucial part within your business which consists of several sections. Therefore, it is better to trust this process to professionals like Prestige Auditors. Here, you have to file all the required accounting forms and submit them to the IRS; it will help avoid any unforeseen issues within your business. You should start gathering all the necessary information in advance. Believe us, it will help you a lot.

Question #3 What Business Expenses Are Deductible?

Based on the type of your business and your expenses, you can deduct several business costs on your tax return. Here are the main tax deductions that you can be eligible for:

• Business Use of a Car
• Home Office
• Business Travel Employee Expenses
• Charitable Contributions

Here, you should keep in mind that each type of deduction has different requirements that you should consider during this process. You can contact our team and we will help you choose the best deductions that both you and your business are eligible for.  We have also different blogs on this topic that you should definitely read. For example, Best Standard Deductions for 2021 and Several Undetected Deductions for U.S. Businesses.

Question #4 When Should I Pay Estimated Taxes?

If you are a business owner, then you should be aware of the fact that Estimated tax is a way for paying taxes on income that is not subject to withholding taxes. The necessity for paying estimated taxes comes when taxes are not withheld from your income. So, you are required to pay estimated taxes in case you receive income that is not subject to withholding dividends: gains from sales of stock, self-employment income, interest income.

There are some cases when you are not required to pay estimated taxes each quarter, therefore, it is better to consult your accountant in order to figure them out in advance.

Question #5 How Can I Improve My Cash Flow?

As a business owner, you should strictly understand that one of the most vital aspects for running both a profitable and safe business is maintaining positive cash flow. Here also, you should cooperate with your accountant in order to figure out your cash flow, analyze the main issues, and create a plan to strengthen it.

Today, we have introduced you to only five answers to questions concerning business taxes. Keep reading our blogs and you will find the second part of this blog where we will come up with more answers that entrepreneurs have about taxes. However, if you intend to start your business, our team is ready to help you with this process. The chain of services provided by Prestige Auditors is really wide: we can help you establish Sole proprietorship in California, help you create an LLC for online business, and tell you everything that you should know concerning e-commerce taxation. You can go through our website where you can find the entire list of services that our team provides. Additionally, you can read lots of informative blogs which will help you succeed in your business.