Recently on Twitter, I shared some small business tax write-offs that most entrepreneurs, solopreneurs and soon-to-be small business owners forget about. The first couple of years in business, my accounting was less than acceptable for business. I went to H&R block and let them do what they thought was best. Lesson learned: hire a CPA or Accountant. It’s worth every penny. My accountant, Rose, only costs me $75 a year. I am one lucky entrepreneur.
Your bookkeeping and accountant can make or break your business. Many small business owners overlook their fiscal situation. The only thing they know is that they are cash-flow poor, or their money is not the way they want it. I suggest taking a refresher course in business money management. You can do it online or at your local college. Trust me, you need to know everything you can about your money.
My first tip is to sign up for Outright. I found out about them early last year, and I am completely smitten with this company. They simplify your tax prep by organizing and categorizing all of your income and expenses. Everything your accountant or CPA needs to do your annual taxes can be done in Outright, and it covers all the categories the IRS needs. They offer a free or $10 version, but around the holidays they run a special for $50 for a full year. A perk of buying the $10 one is that they give you the information you need to know for your estimated quarterly taxes. Outright happens to be one of the best investments I made for my business.
To find more information about these deductions, buy then read Small Business Taxes Made Easy, Tax Savvy, or Deduct It. I would also recommend becoming a member of SCORE in your local town. They offer mentorship between you and a veteran in your industry. SCORE also offers monthly classes to attend for a small fee. Another option to look into is the IRS. They offer small business tax webinars & workshops that are FREE. As an entrepreneur, you know its best to use all those free resources, so go ahead: connect and network.