How to Avoid Tax Audit or 8 Reasons Why You Can be Audited
Many of the small business owners would love to take precautionary steps to avoid tax audit rather than living in fear all the time. There are several reasons why IRS can audit one company instead of another one. Some of them are more complicated than you think, some of them can be easily fixed. Let's look closer at the most common triggers for a small - business tax audit. IRS uses the specific software (Discriminate Function System) to analyze returns and flag them if somet
Qualified for a Home Office Deduction? That Is How You Calculate It
If you are qualified for a home office deduction, you need to determine how much you can deduct. To determine the value of the deduction you can do two ways. Simplified option: Deduct by the square feet. According to IRS, if your home office has 300 square feet or less you can use this method. The maximum amount that you can deduct using this option is $1500. It is calculated by multiplying 300 square feet by $5 per square foot. Actual expense deduction: Deduct by the percent
3 Reasons Why Do You Need to Hire Bookkeeper for Your Small Business?
Being an entrepreneur requires a lot of time and dedication. Most of the small business owners wear several hats. CEO, manager, employee, computer tech ... the list goes on. Sometimes you become overwhelmed with secondary tasks rather than spending time with your clients. If you are an entrepreneur who wants to start your own business, or already a business owner, you need to hire a professional bookkeeper. Here are 3 reasons why: 1. Opportunity cost. Bookkeeping is taking a