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If you’re a small business owner, you most likely have many questions regarding tax preparation. In this case, working with a CPA is helpful, and in Pagosa Springs, CO, many business owners look to Wilson, Rea, Beckel & Associates CPAs LLC for guidance. These accounting professionals provide insight on a range of tax issues, for both individuals as well as small business owners. They can also help clear away some of the confusion associated with business taxes, which allows their clients greater control over their filings.

Debunking 3 Small Business Tax Myths: Insights From a CPA

1. You Can Claim Deductions on Anything Business Related

Deductions are useful for decreasing your tax burden. However, deductions should be made carefully to ensure you’re in compliance. For instance, if you plan on deducting something related to entertaining a client, such as meals, it’s important to know that you can only deduct half of the total cost. You should also retain receipts for anything you deduct in the event that the IRS has questions.

2. Forms Are Easy to Fill Out

CPAAnother pervasive tax myth is that forms are easy to fill out on your own. In many cases, the average person has a hard time comprehending these tax forms and may provide incorrect information as a result. A CPA can easily interpret forms and provide guidance on the best way to proceed. You also have a better shot at catching errors before you file when you have professional assistance.

3. Paying Quarterly Taxes Is Not Necessary

If you are self-employed, you might be obligated to pay quarterly taxes. In general, anyone who doesn’t work for a full-time employer will have to pay taxes on a quarterly basis. Quarterly taxes are due on various dates throughout the fiscal year (beginning in January and ending in September), and many CPAs recommend their clients reserve at least 30% of their earnings for quarterly taxes.

If you have tax planning questions in Pagosa Springs and aren’t sure where to turn, Wilson, Rea, Beckel & Associates CPAs LLC offer the benefit of their expansive experience to local clients in need of assistance. See the full listing of available services for yourself by visiting the website. If you’d like to arrange a consulting with a CPA, call (970) 731-1040 today.

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