Business owners are always looking for an edge to keep their companies profitable and growing. In many ways this can be done by providing great service and superior products. But, what excellent accounting practices are a huge part of the equation.
Our Raleigh small business accountants have had years of experience finding ways to help our clients achieve their business and financial goals. Here are 3 of the top tips that our cpa’s recommend to help small business owners stay prosperous.
Keeping track of your business expenditures is a key element to making sure your business remains profitable. Make sure you have a good record keeping system in place to account for all expenditures. Collect receipts, keep accurate records of cash payments and document heavily in case of an IRS audit.
Monthly expenses for your Raleigh small business could include:
When you started your business, you had the choice of entity classification and likely chose the most relevant option at that time. However, as your business has grown, your entity classification may need and upgrade. This is important because your business should have the right entity selection to make proper tax payments and take advantage of the correct tax deductions.
There are a variety of reasons why changing entity status is a good idea, but there are a few reasons why it is a must:
This is a tricky subject. Taking advantage of the deductions and options written within the tax code is a smart strategy. This way, you minimize your required payout and can use the those new funds for investment or other needs.
Do not look for loop holes or unscrupulous ways to game the system to find breaks. This could get you in serious trouble with the IRS.
Remember that you can write off:
Handling these aspects of finance and taxes can be daunting for most business owners. The tax codes are complicated and any mistakes can create a situation that the IRS may want to investigate. It is in the best interest of small business owners to hire an independent local CPA to handle their financial affairs.