Common Pitfalls That Business Owners Suffer
NOT KEEPING DOCUMENTATION FOR EXPENSES
One of the biggest tax mistakes a small business owner can make is not keeping receipts for all expenses. These receipts are necessary to verify purchases to deduct from the business’s taxable income. FL-Accounting and Advisers is here to help you avoid this mistake. Contact our office today to see how.
NOT HANDLING DEDUCTIONS PROPERLY
Small business owners can run into trouble when calculating deductions without knowledge of limits. Let us assist you with finding out deductions that you may qualify for and let us advise you when making expenditure decisions.
ASSIGNING UNREASONALBE COMPENSATION
After a successful year, small business owners may be tempted to increase their salaries by nearly the total amount of profit. The owner may move profits into salary, in part to take advantage of deductions for salary payments. However, the IRS may look at a company to determine whether the owner's salary is reasonable compensation based on a variety of factors including how much similar businesses make. Our advisers are able to guide you regarding compensation.
THINKING OF CONSEQUENCES
Interest and penalties from fraudulent tax returns - whether intentional or not - can be expensive in the long run as interest typically dates back to the original filing date. FL-Accounting and Advisers is here to help you avoid common pitfalls.