How to Save Money on Small Business Taxes

If you are running a small business, you have the right to pay the required taxes and nothing else. In
fact, in most cases, your small business may eligible for tax exemption. Most small business owners
are unaware of these exemptions and end up paying more money taxes than required.

Being an entrepreneur, you should be careful and grab every tax-saving opportunity available
through deductions, credits, depreciation, and payroll-tax reduction. Instead of paying
unnecessary taxes, you can pay only the required ones and keep your profits.

Following are some tips to save more on your taxes:

1. Check with a Qualified Tax Advisor
You are new in the business and confused when it comes to the payment of taxes. This is quite
normal. Before you make any major decision, you are advised to consult a qualified tax
professional. It can positively impact the business's tax return and spending on un-required
taxes.

Choose a tax consultant who is available throughout the year, especially at the time of the tax
payment. Hire an expert who can represent you and your small business in front of the IRC or the
tax authority in your country.

An enrolled agent might be the best option. These enrolled agents are designated by the IRS, and
they have qualified for a strenuous, three-part test, and they work for the IRC at the same niche.

2. Timing the Income and Costs
Timing is important for small businesses for their success. The timing of income involves the
movement of income from one year to another year. Firstly, select the year in which you aim to pay
the most in taxes.

Secondly, reconsider the current expenses before the year comes to an end. It is also advised to pay
a part of that amount so that the income of the current year is less than the expense. Also, a
business can increase its expenses and decrease income legally by making some expenditures,
including stocking up on supplies or paying the office utility or rental bills in advance.

3. Set Up a Retirement Plan
Setting up a retirement plan for yourself and your employees is an excellent way to save on taxes.
This can saves money on taxes. However, the retirement plan must be a qualified plan, so to gain
maximum savings on taxes.

For this purpose, the retirement plan must be recognized by the IRC to allow deferment on taxes on
the earnings till the earnings are withdrawn. These include IRA s and proper plans of contribution.
This is a normal practice done by most of the businesses these days not only to gain more from the
taxes but also to keep the employees loyal to the business.

4. Avail Tax Credits
Tax credits are exemptions from tax offered by the government if your business meets certain
requirements. It is a technique used by the government to reward individuals and small businesses
for good tax behavior. It encourages entities to pay taxes on time and follow good tax practices.

For example, Carpet Cleaning London takes tax credits for hiring employees, uses recycled
resources, provides access to disabled employees and the general public, and also provides health
coverage for the workers.

You can check with your local, state, or federal tax authorities to see what requirements are
mandatory to become eligible for tax credits.

5. Avail Tax Write-off on Equipment and Vehicles
Small business owners can take tax write-offs on the purchase of equipment, other machinery,
and vehicles. At times a small business can also take a tax write-off on the purchase/renting of
real estate property.

These write-offs can either be taken in the first year after the equipment or machinery is bought or
later. Did you know that the two basic types of accelerated depreciation are Section 179 deductions
and bonus depreciation?

This kind of depreciation is applied immediately when the machinery or vehicle bought comes into
service.

  • Bonus Depreciation:

This kind of depreciation is an extra benefit for the bought assets. From September 27, 2017,
through January 1, 2023, The TCJA also maximized this tax break from 40% to 100% of the cost for
assets when used.

6. Minus the Costs of the Gifts
A small business owner can also minus the costs of the gifts given to the stakeholders, including the
customers and vendors. This deduction can go up to $25 per person. However, an exception is
always there, for instance, for your business franchise.

Subtracting the costs of amusement or refreshment is a bit problematic if an entrepreneur shows
his appreciation by paying for quality time. These costs are not included unless the amusement
event t is directly related to the business.

7. Deduct Car Expenses
You can also deduct car expenses from your tax payments. What a wise entrepreneur should do is
that instead of showing the actual car expenses, they should only show the standard mileage rate
set by the IRS.

For 2012 the rate was 50 cents, and for 2013, the rate is 52 cents. A small business owner can
minus every mile that they drove in the car for business-related work, even if it is in their
personal car.

Keep a logbook so that when claiming the deduction, it is easy to look at the total number of the
trips, areas of the trip covered, and what were the readings of the odometer.

8. Hire your Family Members
Hiring your family or friends in your small business can help the business owners to save a lot on
taxes. Instead of giving your family members or kids after the tax money, why don’t you hire them
in the business? Hiring them would be helpful.

They would do real work. For the tax year 2013, a business owner can pay them up to $5,900 per
year that they collect tax-free, and it gets canceled by the standard deduction. The owner might
pay payroll taxes for them since the business can expense the family members of the kid’s payroll
and minimize the taxes.

Final Thoughts

For small business owners, the above tips must help save money on taxes, but it is to be noted
that these tips are not intended to be tax advice in actuality. These are just the ideas that can help
them in saving more.

These are items to consider when working with your tax clients as their Professional Tax Preparers offering quality accounting services.

Author Bio:
Shaheryar provides ghostwriting and copywriting services. His educational background in the technical field and business studies helps him in tackling topics ranging from career and business productivity to web development and digital marketing.

Ideal Accounting Skills for Working with a Not-for-Profit

Needed across industries and sectors of the economy, accountants play vital roles in maintaining the financial success of any endeavor. In the not-for-profit world, accountants take on the job of securing resources and reducing operating costs to help task-driven organizations achieve more good in the world.

 

Many accountants likely see this as a good enough reason to pursue accounting as a career. Through managing nonprofit budgets and expenditures, an accountant can indirectly serve individuals and communities in need. Even ministers have switched careers to capitalize on the amount of good they could achieve through accounting.

 

But not-for-profit work isn’t the same as traditional accounting work. While many of the same skills apply, accountants in the nonprofit world must hone a unique set of talents. Here’s what you should know.

How Non-Profit Accounting Differs

Many accountants making the transition from work in the for-profit world face a steep learning curve when starting with a non-profit. These economic sectors differ, composed, and driven by different goals and overall missions. While for-profit companies will be more focused on bottom lines, not-for-profits look more at their overall goals and the ways they are using their resources.

 

Accountants in this new environment must be clear on these differences and explore how alternative goals affect accounting work in general. For instance, for-profit entities operate using an often singular ledger system that details revenues and expenditures in a self-balancing account. Not-for-profits, on the other hand, operate with a series of resources and ledgers that must be balanced for ideal application.

 

In conducting this work, there are all kinds of varying terms and practices for accountants to learn. For example, retained earnings become net assets and a net income means an excess of revenues. Rather than an income statement, non-profit accountants create a statement of operations.

 

While these differences may seem primarily semantic, they represent the different goals and practices that drive non-profits versus for-profit businesses. With a non-profit, you don’t want money left over: you want an organization that is doing the most with what it has.

 

That said, there are many useful skills that a not-for-profit accountant can hone to bring greater success to their organization.

Invaluable Skillsets for Not-for-Profit Accountants

First, while accountants can certainly specialize in non-profit work from their undergraduate program onward, any professional with an accounting degree can translate their skills into success with a not-for-profit organization. 

 

Then, it is simply a matter of learning the differences and finding methods to improve the flow of finances and resources towards non-profit goals. Aside from being adept at navigating the nuances of tax-exempt status as a 501(c)(3) organization, not-for-profit accountants require skills like the following:

Excellent Organizational Abilities

For an accountant, the ability to manage a ledger system complete with all its fluctuating account details is a must. For non-profits, however, the impetus for an ideal organization is even stronger. Nonprofits depend on efficiently maintained records to prove their tax-exempt status and be able to highlight processes for investors and stakeholders.

 

Auditing experience is a highly desirable trait of a non-profit accountant as a result. With the ability to organize and review records to prove compliance with investor and governmental requirements, accountants can keep a non-profit smoothly functioning. 

Effective Management of Tight Budgets

The majority of not-for-profit organizations operate with budgets of less than $1 million. Because of this, accountants in the industry need to keep a sharp eye out for any place they can reduce operational costs while also guaranteeing that donor and grant money goes where it needs to go. 

 

Non-profits are often limited by money given with specific donor restrictions. It is the job of the accountant to ensure that these restrictions are being met and reported within financial documentation. This takes attention to detail and great problem-solving skills. 

Quality Communication

One of the most important qualities for any accountant is the ability to communicate financial information. This is even more important in the not-for-profit sector, where donors want specific things and your organization has a mission to fulfill. 

 

Honing your communication skills can be one of the best ways to excel as a non-profit accountant. This takes empathy and clarity, as well as a willingness to be open to questions and concerns. Any member of your organization should be able to come to you with a question and come away with a clear explanation. Teammates should also be able to contribute with useful feedback and clarify practices wherever necessary. 

 

Implementing these ideal skills into your own toolset can be a great way to maximize the potential of your not-for-profit. If you’re just getting started in the non-profit sector, demonstrating these skills can help get your foot in the door. 

Improving your Status as a Non-Profit Accountant

Getting started as a non-profit accountant requires proper networking and professional qualities. While improving your skills, you can adapt your work and academic experience to write a great accounting resume. In turn, you’ll be able to improve your status as a non-profit accountant and land work with your dream organization. 

 

Your ability to do so, however, will come down to how well you showcase your skills on your resume. Highlight your soft skills like listening and communicating effectively alongside harder skills like experience with certain accounting software. Translate relevant job experience into applicable traits for non-profit work, or express a willingness to learn and adapt. 

 

Not-for-profits need skilled and attentive accountants to streamline the effectiveness of their resources. Demonstrating effective organization, budget management, and communication skills can help you get in the door with the non-profit of your choice. 

 

Then, hone these skills to ensure that your organization does the most good that it is capable of doing. By implementing skillsets and strategies like these, accountants can make a real difference in the world.

Lastly, become a certified Professional Bookkeeper that is both trained and certified in both For-Profit & Non-Profit accounting.

Accessing QuickBooks Help: A Tutorial

 quickbooks-popularUAC’s Professional Bookkeeper’s Guide to QuickBooks is a tutorial-based course enabling students to master this popular accounting software.  In this article, we share a tutorial on QuickBooks Help System, taken directly from the course. 

Sometimes in QuickBooks you need help determining what forms to use or what to enter into those forms once you find them.  QuickBooks has a pretty good help system.  Some people are disappointed when they receive the QuickBooks software and realize that it didn’t come with a 1300 page user’s manual like they used to distribute in the good old days.  But to be honest with you, the help that’s available in the QuickBooks program itself is better and more complete than the assistance or help that we used to get in those 1300 page user manuals.

One thing that’s different in newer versions of the software is the position of the Help display.  If you click on Help and then select “QuickBooks Help” or press F1, help displays on the right-hand side of the screen.  To get help on something, click on this search topic and then type in a search phrase. In this example, we’re going to search for “job costing.”

Once you type in “job costing” and press enter, QuickBooks displays 15 different topics related to job costing.  You can view those different topics to see if any of them are helpful.  Let’s imagine you want “unbilled costs by job report.” You click on that link and QuickBooks tells you exactly how to get that report and what information should be on it.

The next Help feature that we want to talk about is the Learning Center Tutorials. To access these, go into Help and Learning Center Tutorials.  These are small videos that Intuit has created to help you understand how to use the program.  They’re very brief, but they provide an excellent overview.  Some of you might have your clients use them to get a general idea of how to use QuickBooks.

Let’s talk just a little bit about Support.  If you click on the support option, QuickBooks connects to the Internet and details the different support options available.  You have 30 days of free technical support when you first register your software, and that’s available immediately after you purchase it.  You can purchase support from Intuit as well.  You also might want to contact Universal Accounting Center to check on the support that we offer for QuickBooks and the Professional Guide to QuickBooks training program.

There are a few other Help features we wish to discuss. First of all, let’s talk about “About QuickBooks Pro XXXX.”  This is the information the software gives you about your specific program.  It provides your license number, the product number and the user licenses.  You want to hold onto these numbers because you will need them if you ever install this software onto another computer (for example, if your system crashes, you’ll need these numbers to install it on a new machine).

Under Help there are two other options that we should talk about:  New Business Checklist and Year‑End Guide.  You use the New Business Checklist when you first start a company; QuickBooks poses questions to ensure that you have done the right things in setting up your business.  There are explanations on each one of those checkpoints, and after you’ve completed them you can check them off.  So if you want information on, for example, choosing a name, you click on “Choose a name,” and QuickBooks displays Help to the right; you can look at that information and click on any of those different topics and then click through the checklists as you complete them.

The same sort of thing is available under Help and “Year‑End Guide.”  This is something you use at the end of the year, and frankly you might want to go through everything to ensure that you have covered all your bases.  You don’t necessarily have to do all these things at the end of the year, but they’re things that you should at least consider doing.

You can also access QuickBooks Help in each of the different areas of the program.  For example, if you have a transaction up on the screen, say, for example, Pay Bills, you can click on the Help feature, which displays as a question mark, and QuickBooks will show help topics that are context sensitive.

The Professional Bookkeeper’s Guide (PBG) to QuickBooks

If you found this tutorial useful, you’d probably like Universal’s Professional Bookkeeper’s Guide to QuickBooks program which will teach you all this and more with training targeted for all user types.  To enroll in this program today, call Universal at 1-877-833-7908!

Is Your Job Satisfying?

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Are you looking for the Wellspring of Professional Gratification?

He has spent all his life in letting down empty buckets into empty wells; and he is frittering away his age in trying to draw them up again. – Sydney Smith

How much time have you wasted trying to draw empty buckets from empty wells by working tirelessly at an unfulfilling job?  You

spend more time working than you do just about anything else.  Is it both mentally and financially rewarding? Or do you count the hours every day, waiting for your day job to end so you can get back to your real life?

It’s a new year—time to take control of your career and steer it towards a more gratifying professional future.  And as you consider an occupation that is both satisfying and lucrative, we suggest you look for two things: 1) a service that is in demand, and 2) something about which you can get a little excited.

Consider tax preparation.

What?  No, really.  Tax preparation.  Nearly every individual and every business is legally required to submit a tax return (talk about a prospective client base!).  In addition, not many people like to do their own taxes, and the truth is many are leery to try.  And with increasingly complex tax regulations, who can blame them?  Thus, tax preparation will always be a service that is in demand.

Enter the Professional Tax Preparer who can expertly prepare both individual and business returns with grace and ease, submit them faster than a speeding bullet and file any necessary extensions in a single bound.  Okay, so maybe tax preparation isn’t that brand of super, but it is pretty cool.  And if you possess a penchant for numbers, you just might be able to get a little excited about tax services.

Increase Your Options and Your Earning Potential

Becoming a tax preparer opens up countless career options.  You could supplement your current income with part-time work in the evenings or on the weekends.  You could expand your bookkeeping service by adding tax preparation to your menu.  Or you could replace your full-time income by becoming a Professional Tax Preparer.  Whichever option appeals to you, the training necessary to become a tax preparer isn’t as long and painful as you might expect.  Universal Accounting Center has made it easy.

Our Professional Tax Preparer program includes the following:

  • Informative video instruction
  • Full 1040 training
  • Full business return (1065, 1120, 1120S) training
  • One Year Follow-up Support from expert tax preparers

Many programs will lecture you on tax law and preparation practices, but Universal’s program is much more effective because it provides you with the hands-on practice that will perfect your skills.  Theory is taught as guiding principles, but the focus is on actually doing taxes to gain proficiency.

The PTP course consists of 20 hours of video training. Most tax preparation courses include books and some worksheets. Our training uses engaging and entertaining tax preparers who give practical advice on tax issues; they also provide real-world solutions that will give you the edge in productivity and profitability. Our instructors know what challenges you will face because they have been there themselves.

You know better than anyone whether or not it’s time for you to move to another well.  If you’re looking for a wellspring of professional gratification, enroll in the Professional Tax Preparer program today.  Call Universal at 1-877-833-7908 to get started now!

A New’s Years Message from Roger Knecht

roger-knechtDear Readers,

Happy New Year!  We hope you’re ringing in 2015 with family and friends.  It’s a wonderful time to reconnect with loved ones and generate good will with neighbors and acquaintances.  It’s also a good time to assess your current trajectory and determine what you’d like to do differently in order to secure the future you desire.

Generally people prepare for the New Year by making resolutions intended to enhance their lives, both personally and professionally. Regardless, it’s the perfect occasion to hit the reset button and start afresh.

Universal Accounting Center (UAC) is in the business of helping accounting professionals start afresh, providing the opportunity to advance careers in a new field or a financial practice where you’re in charge and get to call all the shots.  Whether it’s New Year’s Day or the middle of the year, UAC is in the business of helping people hit the reset button on their careers.

Is that something you would like to do?

Universal has found the most success enrolling students in what’s called the Accountrepreneur Program, which includes everything individuals need to launch their own full-service financial practice:

Students can enroll in any one or combination of the above programs.  Our graduates have found great success upon completing the training and applying what they learn to their careers, many of them launching profitable and life-changing financial practices of their own.

We hope that you consider Universal as you make plans for your future.  Celebrate your fresh start by calling us as 1-800-833-7908 to find out how we can help you customize the career of your dreams.

Happy New Year!

Roger Knecht

President

Universal Accounting Center

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