Top 3 Tax Mistakes of Small Businesses
If you are a small business owner, you know how hard it is to keep track of your taxes. That is exactly why you need a Dallas CPA. Gurian PLLC, a Dallas CPA firm, provides the much-needed stability that small business owners need when it comes to tax season and yearly planning. This Dallas CPA knows exactly how to keep track of your financial records and present profitability and growth for your company.
Wait just a minute. Do you think that you don't need help with preparing your taxes each year? Do you think that you do not require the use of a well-known and credible Dallas CPA? Well, do you know the top 3 mistakes that many small businesses make with their tax record keeping? Maybe you are making one of those mistakes.
Let's take a look at 3 of the top mistakes that small business owners make in regards to taxes.
First, many small businesses keep sloppy records. Do you have all the receipts from business meals, purchased gas, travel expenses, etc.? What about the receipts for office supplies such as copy paper, fax machine, or ink for your printers? Do you keep track of the mileage for every business vehicle that is utilized? If you do not keep track of all of this information, you may not be able to properly document your expenses at the end of the year and could result in an IRS audit. So, keep all the receipts that you can and keep them in a safe place.
Next, many small businesses do not understand the difference between independent contractors and employees. Many small business owners hire independent contractors to keep from paying unemployment and other expenses whereas with employees they may be required do just that including insurance. Classifying your employees in the wrong area could result in an IRS audit - or if you have too many independent contractors as this could raise a red flag with the IRS as well!
Third, many small business owners mix their personal finances and business finances together. If you accidentally bring these two together including finances, bank accounts, etc., the IRS may require looking at each one separately during an IRS audit. Have you been making some of these mistakes? If so, Gurian PLLC, a Dallas CPA Firm, can assist you in getting back on track and successfully helping you make sure the same mistakes do not occur in the future again.