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 ...

It's essential to understand what kinds of taxes you must pay for your small business. These are the types of taxes categorized by agencies that you pay while you run a business. Federal Taxes (The IRS collects the following taxes) - Income taxes - Self-employment taxes for the Social Security and Medicare - Employment taxes (payroll taxes): when you have employees, you, as an employer, are required to pay and/or withhold employment taxes on behalf of your employees. State Taxes - Income taxes - Employment taxes (payroll taxes) - Sales taxes on retail goods: you, as a seller, collect the taxes from your customer and pay to ...

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 ...