Spring Break
Save time and money by tracking expenses
Issue date: 6/28/09 Section: Business
The 2009 tax year brings changes that can minimize tax liability for all small businesses. A tax-free reimbursement for bicycle commuting can be passed onto employees, up to $20 per month for buying, maintaining and storing a bicycle used to travel to and from work. Businesses with Health Savings Accounts (HSAs) can contribute more this year, up to $3,000 for individual high deductible health plans, and $5,950 for family coverage. Those 55 years and older can add $1,000 to those amounts.
Don't overlook the small stuff because it all adds up. Deductions for bad debts (goods sold, not services), customer gifts, business-related books, postage, seminars and trade shows, business association dues and even coffee exist.
At the end of the day, small business owners need to find an expense tracking and filing system that works best for them. The old-fashioned use of folders categorized by expense type or date range is ideal for some. Others prefer technological solutions, which also provide data back up. Important receipts, charitable contributions, bank statements, credit card bills and other key documents can be scanned and filed by fiscal quarter. Owners should make copies for themselves or their accountant.
Tax software can be used throughout the year to help small business owners understand how different financial decisions can affect their tax situation. By organizing early, owners can plan ahead, maximize deductions and save time when it's time to prepare their tax returns. TaxACT customers who pre-order their Preparer's Business software can use preview versions as soon as they're released. Preview versions of TaxACT Preparer's Business 1065, 1120 and 1120S are released in October, with final versions released in January.
Detailed tax information for small businesses is available at www.IRS.gov, and TaxACT product information can be found at www.TaxACT.com.
Courtesy of ARAcontent
Don't overlook the small stuff because it all adds up. Deductions for bad debts (goods sold, not services), customer gifts, business-related books, postage, seminars and trade shows, business association dues and even coffee exist.
At the end of the day, small business owners need to find an expense tracking and filing system that works best for them. The old-fashioned use of folders categorized by expense type or date range is ideal for some. Others prefer technological solutions, which also provide data back up. Important receipts, charitable contributions, bank statements, credit card bills and other key documents can be scanned and filed by fiscal quarter. Owners should make copies for themselves or their accountant.
Tax software can be used throughout the year to help small business owners understand how different financial decisions can affect their tax situation. By organizing early, owners can plan ahead, maximize deductions and save time when it's time to prepare their tax returns. TaxACT customers who pre-order their Preparer's Business software can use preview versions as soon as they're released. Preview versions of TaxACT Preparer's Business 1065, 1120 and 1120S are released in October, with final versions released in January.
Detailed tax information for small businesses is available at www.IRS.gov, and TaxACT product information can be found at www.TaxACT.com.
Courtesy of ARAcontent
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