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Salt Lake City Bookkeeping Blog

Take Action if Your Small Business is Cruising for an Audit

Posted by Austin Walker on May 3, 2016 8:30:00 AM

The words “tax audit” can strike fear into evenAUDIT.jpg the most hard-core small business owner. Although an audit by the IRS can be inconvenient, time-consuming, and stressful in many cases, there’s much that you can do to help prepare for the inevitable. 

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Topics: Outsourced Bookkeeping, audit, tax

[Infographic] When Does It Make Sense To Stop Making Money

Posted by Austin Walker on Mar 23, 2016 8:30:00 AM

Taxes can be a really great thing. If you're paying taxes, it means you're making money. A CPA would tell you that until you are paying 100% tax, you should never stop trying to make more money. Paying taxes also puts money toward social services, and for some, can even be thought as a way of helping others.

Tax Refunds are Poor Financial Decisions

When you're filling out the W-4 for employment and it asks for the amount of dependants you have, along with whether there is any extra you'd like to contribute, make sure you check none. It may be fun to receive that return at the end of the year, or think of it as an additional way to save some money. However, you're giving the government a 0% interest loan, which they can then bank in order to gain interest on it for themselves! Instead, keep the funds in your own pocket and keep the interest for yourself, or invest the money.

Come into Tax Season Prepared

April is not easy, especially if you're a small business owner. You know what this season means: having to pay last year's taxes plus the expected taxes for the current year. Some may suggest that you delay paying, if possible; but instead, we recommend that you just get them out of the way. There are so many different tax penalties along with the interest that the IRS charges for late payments, it's just not in the best interests of the company. Unless, somehow, the company thinks it can beat the interest investing in the short-term. The IRS keeps the penalties and interest amounts pretty steep, though, to minimize the risk of companies attempting to do just that.

Don't ever file for an extension again. Be prepared.

Have a plan going into this tax year and build a plan for next. Have your financials ready and be open with your CPA about what your goals are now and your projected income for next year. They may help you put together a plan to minimize your company's tax liability for the next year.

Pay your taxes on time.

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Topics: Bookkeeping, Small Business Growth, Small Business, Tax Tips, tax

[Infographic] Small Businesses Shouldn't Overpay Taxes

Posted by Austin Walker on Mar 9, 2016 8:30:00 AM

Taxes are certainly something that no one enjoys paying. If a business has an accountant or bookkeeper who is filing the taxes or doing their books incorrectly, they may actually be over-filing, meaning they are paying more than the amount of tax they owe. That isn't just in the instance of state income taxes, but also sales taxes, payroll taxes, and any other state or local tax that relies on financial information. The potential tax overpayment can be substantial.

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Topics: QuickBooks, Bookkeeping, Small Business, Outsourced Bookkeeping, tax