TAXES Small business owners

[sawtooth4x4]

Man, this is the first year I actually made a profit. Well, until I started writing off all my expenses. I've been pouring over receipts, tax forms, and statements. What a pain in the butt.

Anyway, I've gotten it down to a fairly low painless amount after 14 hours of work.

What are you guys using to keep track of everything?

What tax software are you using?

Do you do your taxes yourself, or do you have a guy? ( I do my own (I have an accounting degree with a lot of tax knowledge)).

My main write off is my truck, home office, and equipment and tools for work. I got a better deduction by itemizing my truck instead of just writing off the miles. It saved me a lot, but I had to really dig through all my statements and receipts to save a couple $$.

It seems like engineering work, while decent pay, is harder to find big ticket items to write off.

I think I'm going to get one credit card and use it exclusively for my business. Its too much of a pain to have to go through cash receipts and my bank statements. I think I have maxed out the deductions on my truck now. I think I'll have to get a newer one this year.

 

[zmotorsports]

That is one thing I don't miss. This will be the first year for taxes where we don't have the business and I can't believe how much less stress I am under getting ready. Now it's just our W2's, bank statements and investments and we're done.

As for how I did mine, I tracked everything quarterly, paid my sales taxes quarterly and reported earnings quarterly. Then at the end of the year I really only had those 4 quarterly statements to give to our accountant plus the expenses which I also tracked quarterly, mainly by each job that came into the shop. I didn't have any software, I did mine all old school in a ledger and balance sheet. It was actually quick and easy then just had to bring everything to our accountant who appreciated the way I had everything broken out, it made his job much easier I was told.

Annual property tax on my shop and tools usually followed in February time frame where I had to track all tools and equipment for depreciation/amortization value.

Complete PITA, but worth it for the 20 years I had our shop business.

Good luck, hope others chime in with better ideas on tracking the info.

Mike

 

[jeeper]

All of our receipts go into categorized envelopes on our wall. At the end of each month I account for them. The ‘tax deductible’ envelope gets spilt over the different areas in needs to be (rental properties, appraisals, tools, etc) I keep it all on google docs. Fairly painless.
I pay a tax man. Always worth it for me.

 

[Caleb]

The couple years I had household employees, I always paid someone to do my taxes. Too stressful and complicated to even think about doing it myself . When I had my paintball business, it was much simpler and I did them myself. I just kept all records in a folder and went through that plugging the info in to Turbo Tax.

 

[SAMI]

We've been using Redwood Tax in NSL, who does an amazing job, for several years now. We had taken our small business taxes to two other tax "professionals" and got worked over by their mistakes. I found Redwood Tax from a friend's recommendation, and they've done our taxes ever since. If you ever decide to pay someone to do it for you, give Dallas a call at Redwood Tax.

 

[Cody]

I use a guy named Scott Berensen at It's Refund Time. He's been solid.

We use Quickbooks. I do most of the day to day input of expenses and reconciliations of credit cards, invoices, AP etc. I have a bookkeeping company do the monthly reconciliations, payroll, and help with anything I can't figure out, and then Scott and the bookkeeping folks powwow to do my year end stuff.

You folks doing your taxes right now. psshh. I just finished and paid my 2016 stuff a couple months ago

 

[Agility Customs]

We just paid a guy to do our taxes and it was the best money ever spent. Keeping proper paperwork throughout the year is critical as well.

 

[Houndoc]

Not sure just how we are defining 'small business'. We are a 15 or so person operation with about $1.4M in revenue last year. Wouldn't even try it without professional help. Use our accountant monthly to keep up with expenses, quarterly taxes (sales, payroll etc) as well as income taxes.

 

[Noahfecks]

I don't own a business but I do look at a couple hundred business tax returns each year and here is my feedback from the other side of the table

Sounds like you are kind of a one man band, for a business your size run with quickbooks and keep up with your taxes quarterly. Check with you bank, they should be able to reconcile your bank statements (and credit card) through an auto match sync with QB. With your financial background you should be able to put out a relatively high quality financial statement but have it checked by an accountant because you don't have time to keep up with changes in the tax code and run your business, plus this is an administrative task that adds no value to your business, your time is more valuable elsewhere.

You 110% need to get a card in the name of the business for more reasons than just separating out expenses.