Share:

If you started a small business, chances are you didn’t do so because you love working with numbers or tracking cash flow. Unfortunately, managing finances comes with the territory, and it’s something that business owners have to handle from day one. There is a lot at stake when it comes to managing your company’s finances, especially when tax time rolls around. If you want to protect your bottom line all year long, seek professional tax help from JJR & Associates LLC in Fayetteville, GA. Below, they share a few common mistakes they will help you avoid as a small business owner.

Missteps to Be Aware Of 

1. Failing to Deduct Startup Costs Correctly

Deducting startup costs is a lot more complicated than most small business owners realize. Although you are allowed to do so, there are specific formulas you must follow and limitations on when you can start applying the deductions. For example, you cannot subtract the expenses your business incurs during its initial stages until you have made your first sale; only afterward can you withhold over the next 15 years. Because there are so many restrictions, it is wise to seek professional tax help.

2. Combining Business & Personal Expenses

tax helpIf you put personal expenses on a corporate card, you are setting yourself up for additional headaches come tax time. Since you cannot withhold these expenditures, you will have to separate them before subtracting the other costs on the card. Make your financial situation a simpler by setting apart business and personal purchases.

3. Failing to Pay Estimated Quarterly Taxes

Small business owners and individual freelancers must make estimated tax payments four times a year. If you fail to do so or if your payments are late, you will face interest fees and other penalties.

If you want to avoid some of the most common mistakes that small business owners make at tax time, turn to JJR & Associates LLC in Fayetteville, GA. You can learn more about the tax prep services this accounting firm offers by visiting their website. To make an appointment for professional tax help, call (404) 437-7748. 

tracking