New to business accounting?
Whether you’re a small business owner or an aspiring entrepreneur starting your first business, you may feel overwhelmed with business taxes, accounting and bookkeeping in general. Not to worry, we can help!First, consider what accounting method to use. The IRS defines accounting methods as “a set of rules about when to report income and expenses.” Most small businesses use the cash method. However, do your research, as you may find an accounting method that better suits your needs based on your business model and industry.Four types of general business taxes exist:
- income tax
- self-employment tax
- employment tax
- excise tax
In some cases, more than one of these taxes may apply to you. For example, you may face paying both self-employment and income taxes if you’re self-employed and earn a profit. You may also need to make estimated tax payments and must know how much to pay. The Affordable Care Act may also impact your business taxes.Just as various business taxes exist, we also complete different types of tax forms, such as those to report self-employment income: Schedule C or Schedule C-EZ.Most business owners seek allowable deductions. To deduct a business expense, the payment must be ordinary and necessary. An ordinary expense is common and accepted in your industry, while a necessary expense is helpful and proper for your trade or business. Your vehicle’s operation cost—if used for business—may qualify as a deduction.If you’re unsure about your allowed deductions or any other business tax issue, contact the tax accountant team at Patrick & Robinson CPAs for sound guidance based on years of experience: Office@CPAsite.com or 904-396-5400.We also offer bookkeeping, payroll and business consulting services you need today to help grow your business tomorrow.
