For small business owners, every dollar counts. While you work hard to make more profits from the business, your income and self-employment taxes can be still too high for you to afford. Carefully review your tax return and check if you've deducted all expenses qualified for deductions. Surprisingly, you may still miss a few. Here is the list of commonly overlooked business expenses. The list is not intended to be applicable to everyone. - Advertising & promotional giveaways These include flyers, catalogs, etc - Audio, videotapes and DVDs to improve business skills. - Bank service charges on business accounts Monthly charges, penalties ...

What is a disregarded entity? A disregarded entity is a business entity which is considered to be an undivided part of the owner of the entity for federal tax purposes. That is, the entity is disregarded as an entity separate from the owner. A good example of disregarded entities is a single member LLC that does not choose to be classified as a corporation for federal tax purposes. A single member limited liability company that is not classified as a corporation automatically defaults to a disregarded entity, and file federal income tax return as a sole proprietorship. How does IRS treat ...

Basic Tax Questions That Small Business Owners Should Ask How should I keep my records? What kind of records should I keep and how long? One of the most important things in small business accounting is to keep good records. Good financial records help you calculate income and expenses, monitor financial status, and file tax returns. You may consider using business accounting software such as Intuit QuickBooks, Peachtree Complete Accounting, Microsoft Office Accounting Professional or Simply Accounting Premium. The IRS recommends that you keep your records at least four years. What expenses can I deduct and how much? A business expense ...

Business Expenses - What Expenses are Tax-Deductible? The more business expenses you legitimately deduct, the lower your taxable income will be. Here is a summary of business expenses that you may deduct to lower taxable profit. Business Expenses Expenses to Run Business Auto Expenses (Cars and Trucks) Legal and Professional Services Commissions and Fees Travel Expenses Meals and Entertainment Education Expenses Taxes and Licenses Insurance Bad Debts from Sales or Service Interest Software Expenses to Run Business This refers to expenses that go into business when you operate business. Advertising and Promotion Office Supplies (Office Expenses): consumable supplies such as pens, pencils, paper, pads, books, receipt books, or related supplies Utilities: including telephone, electricity, gas, water, or sewer ...

In cash basis accounting, income is recognized when it's received and expense is recognized when it's paid. The date when the sale is made or the expense is incurred is not significant in cash basis accounting method. In accrual basis accounting, income is recognized when it's earned, realized or realizable. Expense is recognized when related revenue is recognized. Terms: "revenue is earned": it means either products are delivered or services are provided "revenue is received": Revenue is received when a deposit is made or a payment is received. "revenue is realized": Revenue is realized when cash for products or services is received. "revenue is realizable": ...