Make the Best of Your Small Business Tax Deductions

End-of-the-year accounting can be difficult enough without the added stress of doing taxes for your small business. By gaining a clear and concise understanding of how you can make doing completing taxes for your company a simpler task, you can easily take the headache out of tax time. Follow these easy suggestions to simplify the filing process for your small business and grasp a better comprehension of how strategize your company’s tax strategies.

Prepare Along the Way

Waiting until tax time rolls around to prepare the necessary documents and get your business’s accounting updated is a struggle waiting to happen. Instead, make sure you file documents, receipts and information as the year progresses so that they are easy to find and use when they are needed by an accountant or company employee. Take the time, each month or even each employee pay period to make sure accounting books and documents are up to date, filed correctly and completed as expected to make things much easier for you when it comes time to file.

Accept Payment Later

At the end of the year, you could have payments that you expect to receive from customers or other businesses. If it is at all possible, try to accept payments in January of the following, rather than December so that the income is received in the next year rather than the current period that you will be filing for. Accepting payments a little later can save you some serious money that would otherwise cost you more in taxes because of its status as additional income.

Buy What You Need, Now

Your company goes through all kinds of supplies as the year goes on. But buying any of the products or goods your small business needs before the year ends is a good way to increase some of the deductions you can file for when tax time arrives. If you have accounts that are due soon, pay them before the year ends so that you can claim them as an expense on this year’s tax return. Any purchases that can be made early, such as travel arrangements, supplies, services or bills, will benefit your tax status by offering your business additional deductions.

Note Damages or Wasted Goods

Your business will endure waste. No matter what extent you endure damages or depleted supplies and necessities, make sure that you take note of your inventory, keeping track for use when it becomes time to file your taxes. Even goods and equipment that endure marked drops in value can be used on your taxes to create possible deductions and aid your overall financial situation.

Teresa is an attorney and an entrepreneur. She works for a company that assists people with audit representation. Visit her website to find more information on wage garnishment, audits and settling back taxes.

How to Choose A Good Accountant or Tax Attorney

Depending on your situation, you may look to obtain services from a tax preparer such as an accountant or tax attorney in completing your income taxes. A tax professional can help assure you receive all deductions you qualify for and make sure your income tax return is filed according to standards set within tax laws.  The following tips can help you find the right person to assist you in tax preparation.

Learn about different tax professionals and types of tax preparers.  This allows you to choose someone that is qualified based on your financial situation.  There are preparers and professionals that deal with tax issues related to divorce, small businesses, rental property and more.  Titles may include Certified Public Accountant (CPA), Enrolled Agents (EA) and Accredited Tax Advisors and Tax Preparers.

Review their qualifications.  Qualifying professionals may have affiliation with different organizations that provide ongoing education and resources for tax professionals.  Practicing tax professionals should have a preparer tax identification number.

Review their history with the Better Business Bureau.  Know the status of their license and learn of any disciplinary action taken against them.  There are state board organizations that can provide status of a tax professional.

Learn about services they provide and fees charged.  Those who base their fee on a percentage of your refund or claim they get you a higher refund amount than another preparer should be avoided.

A tax professional you are considering to work with should be easily accessible. Should you have questions or concerns after filing your return, you should be able to contact them.

A reputable tax preparer will review records and paperwork along with asking related questions to your finances.  A preparer should thoroughly review your situation to determine qualifications for deductions review your expenses and take time to learn in depth about your income.

Avoid tax preparers that want you to sign a blank tax return form.

Make sure to review tax forms in detail before signing them.  Ask questions when you are unsure about details and make sure you are comfortable with information on the form being accurate.

By law, a tax preparer should include their prepare tax identification number or PTIN when signing a completed tax form.  The preparer should also give you a copy of your tax return.  Although they sign the return along with your signature, the taxpayer is responsible for information presented on the form.  It is important to make sure items presented are truthful and honest as possible.


Andrew is a tax blogger and financial journalist. He writes about everything tax and finance related, from 401K to tax avoidance and from credit cards to mortgage loans.

When High Tech Companies Are Good Stocks to Invest In

When there is a recession, the economy dwindles, there are thousands of job losses and real estate sales fall.  An investor trading stock during a recession will soon become distrustful of improvement, doubting what good stocks to invest in are and will begin to sell their stock shares.  During these times stocks in companies specializing in non-essential or technical items is a scary investment for many traders.

Shares in Technology

Instead of the high tech shares, they often switch to stocks in companies who endorse food products and/or health services.  Are these good stocks to invest in right now?  Many investors will answer with a definite yes because these are public services that will always be in demand.  Dividend paying stocks during this time need to completely researched, to avoid overpaying for shares.  Good stocks to invest in 2010 were health services and these stocks continue to be in demand, but can be found at decent prices.

Rock Bottom Prices

Researching what are good stocks to invest in requires looking for companies that do not have negative news regarding their business.  When the shares hit rock bottom prices and the negative data from the company subsides, then buy shares in the company.  In the majority of scenarios, if a company has negative reports and a drop in stock prices, they will most likely have a reverse in trends.

Spread the Wealth

Finding good stocks to invest in, means to diversify your portfolio.  If you focus on primarily one niche of investments, you are taking a risk for lose.  Whereas if you have stocks in various arenas, you are no longer dependent on one particular area for increased profits.  For example, during a recession the tech stock you have may decrease, but increase following the recession.  Instead of having to sell all shares you own, spread the investments among technology that will gradually increase as well as food and health that will continually increase.