ADVERTISEMENT

    Tax Tips for the Small Business Owner

    As a small business owner, you may look at the approaching tax season as a headache waiting to happen. However, with a few easy steps, you can tackle your taxes painlessly this season and in the future! Below are three ways to prepare for the upcoming tax season, and three things to do now to make 2014’s tax season even more effortless.

    ADVERTISEMENT

    Deanna Barzak

    For now…

    1. Include all deductions. Take the time to include all deductions for items you paid for with personal funds or cash when preparing your financial statements. It’s a good idea to do this on the same day each month (set a calendar reminder), so you don’t forget, and therefore lose out on valuable deductions.

    2. Be organized. Your tax professional will thank you if you provide your business data in an organized and easy-to-read fashion. Submit a QuickBooks data file or a print out of your business’s profit and loss, balance sheet and general ledger. Be sure to provide the information clearly and list expenses by type (office supplies, rent, etc.).

    3. Report your charitable work. Don’t forget to report any charitable donations of business inventory or assets to your tax professional. Remember that while these transactions are write offs for your business, any time you spend on a charitable activity is not—the IRS values it at zero.

    For 2014…

    1. Do your research. Come up with a list of questions you have regarding all things tax-related (laws, benefits, etc.) and give them to your tax professional. Use resources such as the IRS website for more information about business tax laws and to help you make the best decisions for your business.

    2. Track sold assets. Throughout the year, keep track of any sold or disposed business assets. These include equipment, computers, and vehicles. Your tax professional will need to know when and how much the sale was worth, and by keeping track of these as they occur, you’ll avoid having to find the information come tax time.

    3. Keep all receipts. Commonly red-flagged items, such as meals or travel, will need documentation. While a receipt isn’t necessary for tabs less than $75, you’ll have to be able to note the date, place, business purpose and total of each transaction, so it’s both easier and faster to simply keep the receipt.

    For more tax tips, read the article “Ten Tax Tips for Business Owners” by Bonnie Lee, a tax expert and author.

    For more information about Telhio financial services, visit Telhio.org or call 614-221-3233.

    Telhio Credit Union is a full-service financial institution open to everyone who lives, works, worships, or attends school within Franklin County and surrounding communities. Founded in 1934, originally as the credit union for the Columbus Telephone Company, Telhio is a not-for-profit financial cooperative where its members are also its owners. Driven by its philosophy that members come first, Telhio is committed to the highest standards of responsibility and conduct. Telhio offers a variety of innovative programs, services and products to support its members’ financial needs. Telhio offers seven branch offices throughout Central Ohio and nearly 4,000 shared branching locations nationwide. Additionally, Telhio credit union participates in the highest level of combined federal and private share savings insurance available, insuring deposit accounts up to $500,000.*

    *Federally insured by NCUA. Additional coverage up to $250,000 provided by Excess Share Insurance Corporation, a licensed insurance company.

    ADVERTISEMENT

    Subscribe

    More to Explore:

    Should Ohio Raise the Cigarette Tax?

    Ohio has the fourth-highest rate of cigarette smoking in the United States, bringing with it all the expenses associated with the sickness and disability caused by smoking. But how to most effectively bring that rate down is a matter of some debate, according to a survey of a panel of Ohio economists that was released last week.

    Resolve to Keep Your Resolutions

    If you’re keeping up with your financial resolutions for...

    Study: Poor Ohioans Carry Largest State and Local Tax Burdens

    When the United States adopted an income tax in 1913, a major purpose was to make the system progressive and ease growing inequality. More than a century on, Ohio’s system of taxation is having the opposite effect — it’s taxing poor residents much more heavily than the rich and driving further inequality, according to a report released this month.

    A Crash Course in Credit Unions

    The term credit union can be a little misleading,...

    The Land Tax VS Real Estate Tax Debate

    It’s a hot topic in the economics world: Would it be fairer and better public policy if we were to tax just the land on which buildings sit instead of the land and all the improvements as well?
    ADVERTISEMENT