This recap blog was written by Debra J. Freiheit, CPA, MS & Jack Loteryman CPA, members of the Greater Arlington Chamber of Commerce, as part of our Business Resource Sessions.
Business Taxes
Tax Tips from Debra J. Freiheit, CPA, MS
When it comes to tax responsibilities, don’t procrastinate and keep your books, accounts, and other records clean so that you know how your business is doing financially. Calculate the return on investment before investing in assets for the company. Don’t mix business and personal bank accounts or credit cards! Also, know your deadlines – if you don’t know them, ask your tax professional and put them in your calendar. Plan for retirement – and include your kids in that plan! Understand the type of business entities that exist (sole proprietor, partnership, LLC, S-Corp, C-Corp) and understand why you want to be classified as a particular entity. Not at all to be self serving, but one of the main takeaways from today’s resource session is to stick to what you’re good at as a business owner and hire a professional for the rest. Factor in your time as well as expertise or lack thereof in tax strategy and planning and let the expert do the rest.
For more information contact Debra at MyCPA@tx.rr.com.
Tax Tips from Jack Loteryman CPA
Small business owners frequently encounter various tax challenges, including the incorrect classification of expenses, which can lead to missed deduction opportunities and improper income reporting. Hiring a professional accountant or bookkeeper can help ensure accuracy in these areas. Additionally, maintaining organized and thorough documentation is essential for substantiating business expenses and avoiding complications during tax time. Many business owners also make the mistake of mixing personal and business finances, which complicates tax filing and raises IRS red flags. Establishing a separate business bank account simplifies this process. It’s also vital to understand tax obligations such as entity elections, self-employment tax, trust fund tax liability, and the differences between hiring contractors and employees. Procrastination is another common pitfall that leads to errors and missed deductions, so planning ahead and gathering documents early is key. Finally, having a strong relationship with a tax advisor, along with forecasting and budgeting, can help business owners better anticipate tax liabilities, manage cash flow, and avoid unnecessary headaches. (AI generated summary. Download Jack’s full Power Point here.)
For more information contact Jack at J.Loteryman@jtcllp.com or visit him online at https://jtcllp.com/locations/arlington-cpa.
