If you’re not sure how much your small business should set aside for tax time, you’re not alone. This is one of the most frequently asked questions from small business owners. If you need help with the financials of your Cincinnati-based business, let Orcutt and Co. help. We specialize in payroll services, bookkeeping, accounting, and tax prep. In this article, we’ll explain how you can determine how much to set aside for tax time. 3 Steps to Save for Tax Time…
Everyone loves to receive a tax refund and, as a small business owner, you may be wondering if it’s possible for your small business to receive one. The simple answer is yes, it is possible for a small business to get a refund. However, it’s not guaranteed and may not be likely depending on your specific business. In order to increase your chances, you need to understand how tax refunds work and how you can increase deductions to decrease income. If…
Every small business owner in the United States is required to pay taxes. The exact amount varies based on your business structure and the state you are in, but this is one of the largest business expenses you will have. On average, small businesses pay a 19.8% tax rate. In addition to being one of the largest expenses, it’s also one of the most important. If you don’t pay your taxes or you pay them late or inaccurately, the consequences could…
While it’s true that receipts are a pain and can get out of control quickly, it’s important to understand that as a business owner, you must save the receipt from a transaction. This ensures good recordkeeping. However, you’re probably wondering what receipts you need to keep and for how long. We will answer these questions below. If you have a business in Cincinnati, let Orcutt & Co help with your accounting, payroll, bookkeeping, and tax prep duties. We can help…
In 2021, the federal government collected more than $4 trillion in tax revenue. Every year, it’s essential to find tax tips to save you money when filing business taxes. Don’t pay more than you must! As a new business owner, you should familiarize yourself with tax tips, including hiring a professional tax preparer, business classification, and deductions. Filing your taxes is not a daunting task. If you are a new business owner, here are 5 tax tips you should know about when…
Did you know that tax season is one of the number one ways businesses get into legal trouble? If you don’t file your business taxes in the correct manner, you might face fines or other penalties. Incorrect tax filings include not knowing what business expenses to deduct or incorrectly representing your business’s net income. So, preparing is a necessary step for every small business during tax season 2022. Below, we’ll get into the various steps you need to take to prepare…
Year-end tax tips can help save you a lot of headache next tax season. If you struggle with tax filing, you’re not alone. Every year, as many as 33% of Americans file their taxes late. Some just forget, others struggle to get things together in time because they left it to the last minute, and others are scrambling to make sure they have everything they need to keep their bill low. It’s not too late to make sure you have…
What’s the goal of every business? To make a profit, of course! A business can generate more profit by increasing revenue, managing or reducing expenses, and optimizing tax deductions. These are our recommended best and worst practices for monitoring and deducting business expenses: Understanding Business Expenses Expenses are the costs that a company incurs in the process of generating revenue. Importantly, businesses can take properly recorded tax deductions on their income tax returns, provided that the deductions meet IRS guidelines. Deductions fall in three…
It’s one of the most difficult undertakings to embark on alone. Especially when looking at the statistics, starting a business is a risky venture. This is especially true if you’re financially unprepared. One of the biggest challenges to more than 30% of small business owners is capital! Depending on the business, starting costs and the required capital will vary massively. Small business costs in particular can really take the wind out of your sails going forward. How Much Does Starting a Business…
As a small business owner with a lot on your plate, the last thing you need is to make any tax filing mistakes that could bring the IRS to your doorstep. Often getting audited by the IRS isn’t always the result of intentional acts. Here are five of the most common tax filing mistakes that are likely to get you a dreaded letter from the IRS asking for more information: 1. Under-Reporting Income Whether you are a freelancer, a brick-and-mortar…
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