We’re officially in the middle of tax season, and small business owners have both personal and business taxes to take care of. Successful small business owners know the importance of tackling tax issues as soon as they present themselves, but hectic schedules and an ever-growing list of responsibilities can make this a difficult task. As we draw closer to the April tax filing deadline, it’s important to determine exactly what your organization owes to Uncle Sam and to figure out which deductions you can take advantage of this filing season. Don’t let taxes destroy all your successes; keep the following tips in mind and come out of tax season in a better financial position than ever.
Small Business Finances
In the olden days, if you wanted to purchase something, you had to physically go to the store, pick it out, pay for it, and take it back to your office. Now though, virtually anything your business might need to purchase is literally at the tip of your fingers thanks to the marvels of the internet. But as with every technological advancement, there’s a downside to this new-found convenience. It can be so easy get caught in a cycle of buying things you don’t need based on a spur-of-the-moment impulse. With that in mind, let’s take a look at a few helpful hints so that you can use online shopping to your company’s benefit –– not a detriment.
Are you writing checks for your small business with your personal checkbook? Or, are you not writing any checks at all? While a majority of your monetary exchanges might be done digitally, there are still some great reasons for having a designated checking account with actual checks for your business. You might not use checks because they seem old-fashioned. While they might seem unnecessary for personal checking, they can serve a great purpose when it comes to legitimizing your businesses. Here are 4 reasons why your business needs checks.
You’re thinking of getting a car for company use. There are lots of good reasons to do this. If it’s only for your own use, it could work out cheaper than the cost of buying a car privately, because you will be able to write off part of the cost against tax. If it’s for the use of several different company representatives, you’re likely to find it cheaper to insure than a privately owned vehicle used in this way. Having a company vehicle or vehicles means that you have more control over the image that your business creates – you won’t have to worry about your representatives turning up to meet clients in battered older cars and making a bad impression. However, if yours is a small or medium-sized enterprise operating on a tight budget, a company car represents a big upfront expense. What can you do to make the cost as manageable as possible?
Planning and sticking to a budget is a technique that smart entrepreneurs use to help grow their business. However, budgeting isn’t just limited to the business-world. In fact, entrepreneurs would be wise to use budgeting in their personal lives to help them operate more efficiently. By optimizing your personal budget, you can find extra money that can be used for long-term savings, debt repayment, or to help grow your business.
A sole proprietorship is a business that legally has no separate existence from its owner.
Therefore, business insurance is of particular importance for sole proprietors, in order to protect their personal and business interests. Running a business as a sole proprietor is a challenge, and it often involves putting your own finances at risk.