Q.1 – How can I prepare for tax season?
A.1 – Keep running tabs on business expenses that you might claim on your taxes. Keep all closing statements and financing documents for any purchases made. Make sure to let your accountant know of any changes that may have occurred in the year, such as retirement, marriage status changes, etc.
Q.2 – What business expenses can I deduct?
A.2 – You may be eligible to deduct home office expenses, business use of car, business travel, employee expenses, charitable contributions. Always consult with your accountant to see if you are eligible for these deductions and keep accurate records of these expenses.
Q.3 – When should I pay estimated taxes?
A.3 – Individual estimated taxes are paid quarterly and are due April 15, June 15, September 15, and January 15. Business estimated taxes are due April 15, June 15, September 15, and December 15. If those dates fall on a weekend day, they will be due on the following Monday.
Q.4 – What is the best way to run payroll?
A.4 – It depends on how you are most comfortable. Business owners can run payroll by hand, which is the least expensive but most time consuming, outsource to a payroll processing company, which is the most expensive and time saving or use payroll software, which is a good middle ground option to save you time and expense.
Q.5 – What is the difference between sales tax and use tax?
A.5 – Sales tax is charged at the point of sale on goods and services. Use tax is filed and paid on items that were purchased outside of your own state and no sales tax paid but used within your state.
Q.6 – What is a required minimum distribution (RMD)?
A.6 – For traditional Individual Retirement Accounts (IRAs), owners have the responsibility to make annual distributions from their retirement account, beginning at a certain age.
For Document Retention Information please refer to the Record Retention page on our website under the Resources heading.
For Sales Tax Nexus Issues please refer to the State-by-State Guide to Sales Tax Nexus page on our website under the Resources heading.
