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Archives for August 2015

5 Tax Savings Tips From Your Small Business Accounting Services Experts

Accounting Services

Accounting services and bookkeeping services are two things every small business needs to function. But for many small businesses, neither of these two integral business functions seem particularly appealing. Add to that all of the information you need to know come tax time, and you’re looking at a full-time job by itself. So if you’re looking for ways to save money come this tax season, here are five deductions that you can put to good use. 1. Your home-office space is tax-deductible. Many people who run a small business forget or neglect to claim this deduction. But it’s worth every penny to do so. There a few ways of calculating this deduction (simplified and regular), so refer to the IRS’s website for the best practice. 2. Don’t forget office supplies deductions. If you have been forgoing this deduction, now’s the time to stop. A small business can save nearly all of their money when it comes to office supplies and miscellany. For a more comprehensive look, the IRS has outlined all the details for convenient viewing. 3. Depreciation of furniture and equipment will benefit the whole. It behooves a small business to look closely at this deduction. Things like office furniture, printers, laptops, copiers, and so on can be depreciated over a 5-7 year period. 4. Driving for business-related events. Business mileage can add up fast. Deducting trips related to business, like ventures to meetings, office supply stores, etc., can save your small business money in all the right places. Keep those receipts. 5. Meals are tax-deductible. Most people already know this, but some are unsure when it is applicable. According to the IRS’s website, deductions can take place in two instances: – It is necessary for you to stop for substantial sleep or rest to properly perform your duties while traveling away from home on business.  The meal is business-related entertainment. Please read the other details for when not to deduct, and on standard meal allowance and actual cost. Is your small business ready for tax season? Do you need the help of qualified bookkeeping services? Then please contact us for more information on how we can help.  
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Accounting Services for Independent Contractors

Accounting Services

Perhaps you became an independent contractor because you like the flexibility of setting your own schedule, determining your own pay rate, and working for more than one client at a time. There is also the possibility that you had no choice in the matter. You either had to accept work as an independent contractor or not work at all. In either case, we recommend scheduling an accounting consulting appointment with A&B Accounting and Business Solutions, LLC at least once per year. Tax Mistakes Made by New Independent Contractors What many first-time independent contractors fail to realize is that they are both the employer and the employee in the eyes of the IRS. This means that you are responsible for paying the employer portion of Social Security and Medicare taxes as well as your own share. When you don’t plan for this expense, you could be in for an unpleasant surprise at tax time. The IRS requires self-employed people to establish and pay quarterly income tax based on their expected income. The deadlines to make these payments are January 15, April 15, June 15, and September 15 every year. However, you may be exempt from quarterly reporting if your income falls below a certain threshold. In that case, you would report all earnings and deductions on your annual income tax return. Independent contractors also make errors when it comes to deducting legitimate business expenses. In most cases, this is because they are unaware of what actually qualifies. Before you file your taxes for the year, read IRS literature to ensure that you know what does and does not qualify you for a deduction.  We offer a variety of accounting services to fit your needs. Schedule Your Appointment Before the Rush Tax season will be here before you know it, but you don’t have to go it alone. Just contact us to schedule a consultation appointment or to have us prepare your return.  
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Tax Preparation Service in Palm Beach County Outlines Two Important Small Business Changes

Tax preparation service
  • By now, you have all of the information you need to file your Palm Beach County small business taxes. Tax preparation this year shouldn’t be too much different from previous years. In fact, if you are pro are doing your small business taxes, this tax year doesn’t bring with it much difference overall. For many people in Palm Beach County though, confusion and consternation pervades into their psyche when they think of tax time. Sometimes the complexity is too much. We get that.  You need to work with professionals that are experienced in tax preparation for small businesses. So to help you out, here is some information on two important changes to help you get those taxes ready, and to keep Uncle Sam happy. Tax Extenders Small businesses rejoice! Two separate tax breaks have been extended for small businesses: Section 179 and bonus depreciation, which can be used together. Here’s the information from an associated website that outlines all of the details: Jan 1, 2015 – As of midnight, the Section 179 limit has been reduced to $25,000 and no bonus depreciation is available for the 2015 tax year. Stay tuned, if prior years are any indication, the expanded Section 179 limits could be restored by Congress during 2015. For additional information on Section 179, visit the aforementioned website to find your specific situation and see what tax situation applies to you. The Affordable Care Act The ACA brought with it a hardy 2,400 pages of light reading in terms of updated tax code. It also brought potential tax penalties for those who don’t provide benefits to employees. As SBA.gov reports: Employers with 100 or more full-time (or full-time equivalent) employees that do not offer health insurance to their full-time employees (and dependents)… may be required to pay an assessment if at least one of their full-time employees receives a premium tax credit to purchase coverage in the new individual Marketplace. That is, businesses with 100 or more employees are required to offer health insurance to 70-percent or more of them, or face a tax penalty of $2000 per each employee not covered. For some additional reading on the Affordable Care Act, check out the website we mentioned earlier to find out where you fit in and what you’ll need to do as a small business owner. For additional information on how we can help you complete your small business taxes, please don’t hesitate to contact us any time.  We have many years experience in tax preparation
 
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