Small businesses are usually tight on resources, so it’s important that you track and manage your expenses.
Most small business owners don’t look forward to the financial aspect of running their business. It all seems to fly away to bills and taxes and payroll. Staying on top of your company’s accounting tasks is an excellent way to make sure you’re getting every possible benefit for your business and, additionally, to reduce stress when tax season eventually makes its way back into our lives.
- What record-keeping strategy helps you the most?
As you have come to know (and hate) you owe the IRS a portion of your business profits every year. At the same time, the expenses you make to keep your company running–from the pens to computers to labor–can be deducted from your profits to reduce the amount of taxes you owe. You must keep good records on what expenses you incur to make sure you calculate the greatest deduction possible, and can also prove to the IRS that you made these purchases.
- Business and personal finances must be separate.
You should have separate bank accounts for your business and your personal life expenses. It’s much easier to keep receipts and look at statements when you have different accounts.
- Know what’s deductible.
You can only deduct from what is actually deductible. If you spend thousands of dollars on items that aren’t deductible, you won’t see a dime from the IRS on your return.
Managing your business’ expenses will save you a severe headache and save you from a potential penalty if you don’t file everything correctly. Your business deserves to be covered, and you deserve to save money while protecting your business. To find the right business insurance that will protect and cover your company, be sure to contact Scavone Insurance Center, located in White Plains!