Quickbooks Help Equals Tax Savings
Quickbooks Help Equals Tax Savings
So, you've worked hard all year, keeping records in your Quickbooks file and now you come to tax time. You've dotted all the "I's" and crossed all the "Ts" but how can you be sure that you're getting the maximum tax benefits and are not paying too much? The answer is simple, by having a review of your Quickbooks file, an experienced consultant can often find simple mistakes that happen in your bookkeeping and save you big bucks.
One way an error can happen when a business owner contributes their own money to their business. It happens now and then that you may have to use your money for a business expense. If this money is simply recorded as income, it will be taxed. This type of income must be specified as an owner contribution to the business within your Quickbooks file in order to avoid being taxed. Don't make this mistake and find yourself paying tax on your own money.
Often, instead of giving money to use for your business, a business owner will loan money to their business. These are funds that will be paid back to the owner, possibly at a more stable financial time in the business. Remember, you only pay sales tax on income not on loans or contributions. Record this type of credit as loan so it will not be mistakenly taxed as income.
Many business owners use credit cards to make purchases for their business. Quickbooks is able to sort these charges and recognizes them as expenses for your business if they are recorded correctly. Suppose you purchase new office furniture from a superstore and simply record the total amount spent. Quickbooks needs to know what type of expense this was so that it could be correctly classified. This would be an office expense, and would be a tax deduction for your business. Take the time to specifically record credit card charges rather than just a one-time charge to your credit card company in order to receive accurate deductions.
Quickbooks also keeps track of how much sales tax you will need to pay to the state comptroller each year. However, if you have not recorded each of your income and expense transactions correctly, the sales tax payment may be too high. For each sale to customer, the amount of the tax must be recorded separately from the cost of the item. The amount you will pay to the comptroller will also need to be correctly recorded through the 'Pay Sales Tax Liability' window.
Finally, a common mistake people make both in business and in personal finance is incorrect recording of ATM or debit card purchases. It's easy to swipe your card making a quick transaction and be on your way. It is crucial to record each debit or ATM use correctly. Think of it as each time you use a debit card, it's just like writing a check and must be recorded just like a check would be.
If you use Quickbooks for your business bookkeeping, don't make the mistake of assuming everything is done correctly when tax time rolls around. Finding an experienced Quickbooks help consultant is crucial to be certain you maximize your tax savings and get your business in the best financial situation possible.
All Is Not Lost! Tax Payment Options The Nfl Film Had The Honor To Win An Academy Award Your Tax Strategy Questions Answered Claiming Tax Back When Leaving The Uk Cantor & Webb P.A. Further Expands Its International Tax Department Singapore Taxes Support Economic Growth There is Always an IRS Tax Relief Irs Tax Lien Attorneys More On Unexpected Phantom Income Tax Gains Singapore Corporate Tax Essentials Which Will Opt For The Recommended Nfl Hats That You Follow The Form Understanding The Tax Gap What to Expect from Purchasing Tax Liens