With the regular 2018 tax season over, most of us are breathing a sigh of relief, but it doesn’t mean that we can slack off! Staying on top of your taxes is a year long process, but it doesn’t have to be a stressful one.
Whether this tax season was a breeze for your small business, or it was traumatizing and you considered the white flag, we have a way for you to keep your taxes in line and out of mind!
How do you know if you need to pay quarterly estimated taxes?
If you are a sole proprietor, S-Corp shareholder, or self employed, you generally have to pay quarterly taxes.
If you will owe $1000 dollars or more in taxes, you should definitely be paying quarterly tax estimates.
Why do we pay quarterly and not just once a year?
This cuts down on penalties from the IRS. It also allows your small business to plan accordingly for four smaller expenses instead of one large yearly expense.
If you are an employee or if...
Tax season is stressful even when you’re prepared for it, but it’s downright overwhelming when you aren’t. Piles of paperwork, deadlines, and the fear of not knowing how much you might owe can make the most shrewd business owner consider procrastinating until the last minute, we know, we’ve considered that one-way ticket to Kauai too.
Never fear, we’ve compiled some great advice to help you climb that tax mountain and find your sweet return at the top!
If you know when you need to have things done by, planning them out is easier. Here are the most important tax deadlines that you should know about:
The tax law reform that went into effect in January of 2018 was the biggest reform passed in the last 30 years. It will affect both individual and business returns in multiple ways.
If you’re curious as to how these laws may change your tax return, we have you covered!
There are several large changes that you’ll be seeing this spring on your tax return, and some are more noticeable than others.
For 2018 the tax brackets have seen significant changes that will affect how much you owe compared to the previous year.
These rates will change again for 2019.
Personal and Dependent deductions, the per person deductions of $4050 on your 2017 return, have been suspended, and will not be appearing on your 2018 return.
However, the standard deduction has been significantly raised.
For healthcare, the allowable medical deduction floor has been...
No one enjoys tax season, but as a small business owner, it can be especially stressful.
One of the most important things you need to do at the beginning of each calendar year is send out reporting forms to your employees and the IRS. If you pay non-salaried employees, contractors, or a variety of vendors for services, you will likely need to send out 1099-Misc forms to report these non-employee wages.
Luckily, Quickbooks Online is prepared to help you out, and we’re going to explain every step!
If you haven’t kept your books up to date for the previous year, you won’t be able to send out any forms for tax season. If you need help with that, you can check out our guides to bookkeeping basics in the blog section.
Once you’ve got all of your accounts reconciled and ready to go, double check that all of your transactions...
The 1099-Misc form is used to report non-employee income payments. If you only have regular employees, you’ll be giving them each a W-2 instead.
As a small business owner, it’s very likely that you will receive and send a 1099-Misc form at the beginning of the new tax year. These forms are used to show the IRS what you paid any non-employee workers.
If you’re are a contractor, your employers will send you a 1099 as a tax document recording how much money they paid you for that tax year. You will use these documents to provide the IRS with gross amount of money that you made as income for the tax year.
As a small business owner, there are several conditions under which you are required by law to send 1099s to your vendors or contractors:
There’s nothing quite like the end of the year to help remind you about how busy you’ve been for the past 11 and a half months.
So, to put a bow on our 2018, we’ve got a short list of our best bookkeeping blogs and our guide on how to pay yourself.
If you’re spending a lot of time with us, there’s a decent chance that you’re in the northern hemisphere, and that means it’s winter! Here’s my favorite warm drink recipe, a mexican mocha, as a little treat from me to you this season!
Inside Out Mexican Mocha Recipe
This can be used with a regular 8 ounce cup of coffee or with a double espresso shot :)
Can you believe that 2018 is almost done??!
We certainly can’t! It doesn’t seem to matter how organized your are, when you have a lot of stuff to do, it’s almost like time passes faster. And since I’d get in trouble if this blog became a discussion about relativity, we’ll skip to the good part and cover 4 Tips and Tricks to help you make sure your books are where they need to be!
If you’ve kept up with our blogs throughout 2018, you might be familiar with some of these tips, but that won’t make them any less useful.
Whether you’ve mostly kept up with your books for the year, or you’re staring down multiple months of transactions, read on for some ways to save your time and sanity!
Your Chart of Accounts, or CoA, is your friend! It contains all of the categories that you use to keep your bookkeeping records as well...
In your small business, time is quite literally money, whether it’s billable to your client or the hours that go into figuring out your payroll, you absolutely must be tracking work hours!
Tracking your and your employee’s time is important, obviously. But, like most things in business.... Just because it’s important doesn’t mean it’s convenient or easy though!
Time tracking applications exist to save you time and to help prevent mistakes. Many options allow you to code different pay rates, set schedules or approve time, and view basic reports on how much time and money are going to different types of work.
All of the applications we’re covering here will integrate directly with Quickbooks Online, making it...
We’re going to cut to the chase here: mileage deductions are one of the most frequently missed deductions on business tax returns. It’s not a small deduction either, Intuit reports that mileage deductions average out to over $600 per self-employed subscriber.
That’s money you could be saving on taxes every single year.
Quickbooks Online offers a plethora of apps you can use to make your experience better. Here we’ve got a list of the best software apps that you can use to track your business mileage!
If you are a sole proprietor and use a Schedule C for your small business, then you should consider using Quickbooks Self-Employed. It’s mobile phone app allows you to record your mileage and directly populate your tax forms through Intuit’s Turbotax software.
Mileage tracking doesn’t cost any extra on top of...
Why do we need to reconcile our bank & credit card accounts?
To keep it simple... Because we want to make sure the transactions reflected in your business records match the transactions recorded by your bank.
We use bank (and credit card) statements to double check that the accounts in our bookkeeping system, accurately reflect the transactions in the physical account they represent.
The use of systems like double-entry bookkeeping help ensure that you enter the correct numbers in the right places; bank reconciliations is the "bow" you tie on your account that lets you know that all of your transactions were recorded correctly, then they match the actual transactions and balances in your bank accounts to make sure you didn't make any mistakes.
Now you might be wondering, do ALL of my accounts need to be reconciled? The simple answer is no. But to help you know which accounts do need to reconciled, here's a quick refresher about how your accounts...
Stay up to date on all the latest tips, tricks, and tools from Bookkeeping Academy Online.