Stay Ready so You Don’t Have to Get Ready

It’s that time! For some you may have filed an extension for your 2020 taxes but water break is over, it’s time to get back in the game and tackle these 2021 taxes! If you didn’t take that route and looking to file net year… this is for you too!

If you haven’t already…

How to Prepare the New School Way

  1. Give or Obtain Your Personal Information (ID, SSN…)
  2. Same for Your Dependents or Spouse
  3. Download Those Bank Statements
  4. Gather Those 1099s (Robinhood, Savings, Contract Work…)
  5. Keep Receipts (Nowadays most receipts are digital)
  6. Refer to your Bookkeeping or Spreadsheets on your Annual Expenses (better to have proof)
  7. Track Your Commute to & from Work!
  8. Do them Yourself or Outsource
  9. File & Pay by the April 15, 2022

If you’re like most business owner in America, you will owe taxes when you file! Planning ahead is vital, because you may end up having to pay more with an installment plan, if you can’t cover the cost completely. It’s widely known, that ro be on the safe side, you want to save at least 15% of your business income to cover your taxes.

Stay Tuned on How you can Lower Your Tax Liability in the last Quarter of the Year!

How does Bookkeeping work?

The process of doing your own or giving someone else the responsibility is tedious and can be time consuming.

Going At it Yourself

  • Learn the Basics for Your Industry
  • Choose an efficient accounting software
  • SEPERATE YOUR PERSONAL AND BUSINESS
  • Create Your Own Records (Payroll, Invoices, Debts)

Outsourcing?

  • Give Access to Financial Accounts or Bank Statements
  • Answer Bookkeeper’s Questions about scope of your business
  • Prodive with necessary info to understand your business process
  • Give previous tax returns

Bookkeeping is one of the oldest professions in the world! They offer support and guidance for any type of business.

Bookkeeping is recording and assigning financial transactions, journal entries, posting to ledgers and so much more. Bookkeeping is determing what systems to use, software to use, and essentially what expenses need to go. Bookkeepers are the tires to a car or the key to the door.

Are Bookkeeping Fees Tax Deductible?

Deducting Legal & Accounting Fees

Yes, you can deduct your bookkeeping fees as a business expense on your tax return. These expenses lower your taxable income, meaning the less money you’re liable to pay to the IRS.

Check out my Downloadable File for common business deductions!

TIME IS MONEY!

When you’re reaching out to professionals to help you with your business, the consultation, the meeting, any other factors that made the conversation possible, is tax deductible. Let’s say you use your personal cell phone for business, that business percentage of your phone is tax deductible.

So what does that look like?

By using your data plan and phone to reach out to professionals, customers and vendors for your business, the business portion of the total usage is deductible. This applies to a home office, car + car expenses, health insurance, and so much more.

Everyone wants to pay less money in taxes, to best achieve this, seek the professional guidance from tax, accounting and bookkeeping experts! By consulting with an advisor, they will save you money and the money you pay them will lower your taxable income! It’s a win, win!

Check Out the IRS updated link, on all business expenses that you can report!

https://www.irs.gov/publications/p535#en_US_2020_publink1000208843