Tips to Help Small Businesses with Tax Preparation

The year 2020 can be labeled as a year of major change for the market. There have been many significant changes introduced by the IRS for businesses in order to help them survive the catastrophes of this… centennial year. The tax laws for income taxes for freelance workers and small businesses have been modified to a great extent. In order to save a significant amount of money through tax deductions and reporting them well, suspicion-free, it is important to familiarize yourself with these changes. The following is a list of helpful tips to support small-scale businesses in their tax filing endeavors. Go on and learn more. 

● Stay Organized 

To take good care of your accounting, it is essential that you make the best out of your organization skills. Whereas the market is chaotic in our unprecedented times, the more organized that you are, the more likely it is that you will find a way out of this chaos. 

● Use Accounting Software(s) 

There are multiple softwares available online for you to download your transactions into, so that you can keep a good track of your accounting. 

● Hire a Professional 

Simply put, a professional can guide you in the right manner to help your business grow well.

Sadly, there are many businesses that have succumbed to the economic atrocities brought by the Coronavirus pandemic. Also, there is a large number of businesses that are only hanging by a thread. Framed in this context, it is imperative that you make every effort possible to streamline your finances, such that your business can survive and succeed in these difficult times. It follows, experts strongly recommend that one reach out to an online CPA platform that can offer assistance with filing income taxes for freelance workers and for small businesses. Agro Accounting CPA is one such online CPA platform that can assist you through these tough times. Visit the official website of Agro Accounting CPA in order to get more details.

6 Expenses You Can Add to Your Tax Preparation for Freelancers

When you are a freelancer or small business owner, you might assemble people to help you in your work and, in this way, you lead your business as an entrepreneur. You can add the following expenses to your tax preparation for Freelancers in order to get “tax perks.” 

1. Write-Off the Cost of Inventories - When you write off the cost of inventories (whether you sell goods online or offline), these items get deducted from your total revenues. Your total taxable revenues are decreased, then. So, when you write off inventory costs, you pay taxes only on your profit and not on your entire revenues. Basic enough, yet it will save you a big chunk of money! 

2. Work Trips - When you take work trips, in your own car or by many other means, you are allowed to write off the allocable cost of your business trips. To find out more, you should consider talking to an accountant for Freelancers and obtain their professional advice. 

3. Home Office - As a freelancer, in general, you start off by working from home. If you dedicate a place in your house completely to work, then you can write off the allocable cost of your house - after evaluating the square footage of your office in relation to the size of your [entire] home. 

4. Utilities you Use at Home - More ways to save on income taxes for freelance workers! When you use utilities like electricity and water - also your telephone and Internet, your Netflix (for creative inspiration) and other things too - then a part of these expenses can be written off. After all, you are using them for work purposes too! 

5. Insurance - When you are not working for an employer and are consequently not covered by anyone else’s insurance policies, if you pay insurance for your work (business liability insurance) and yourself (health insurance), then you can write them all off. 

6. Other Freelancers’ Hiring Costs - So, you started off as a freelancer and now run your business and are a successful entrepreneur, right? Well, when you hire [other] freelancers to help you in your work, according to our accountant for Freelancers, you can write off the costs of your freelancers’ help too. If you pay them more than $600, make sure to issue them a Form 1099-NEC at year-end.