We all know 2020 was a crazy year. However, many entrepreneurs took a leap of faith and started their first small businesses! Now, in 2021, you are facing your first tax season as a small business owner.

For example, did you know… The Internal Revenue Service permits a first-year deduction (up to $1,040,000 in 2020) for most furniture and equipment, instead of writing off the cost over five or seven years?

From the example above, you can deduce that small businesses face a multitude of items when it comes to tax preparation. If you are a small business owner, using the services of an Accountant and Trusted Advisor that will help you with the complex issues of tax deductions, credits, etc. Many small business owners rely on accountants to handle these issues for them and keep their bottom line in good shape.

Filing taxes can be a daunting task especially for first time small business filers. If you are not sure about the steps involved, then it is time to call TSAT to help you with filing your taxes. In the meantime, here are six tips to keep in mind when filing your small business taxes.

  1. Choose the right Accounting Basis
    • Cash Basis
    • Accrual Basis
  2. Keep Track of Automobile Expenses
    • Where and when travel occurred, which clients were seen, and the nature of the business purpose
  3. Plan for Paying Self-Employment Tax
    • Do not get caught off guard. Self-Employment taxes can represent a large portion of a sole proprietor’s tax bill
  4. Review the Business Tax Forms
    • Business Tax Forms differ from personal. Be sure to review and ask questions if you do not understand
  5. Understand Non-Employee Compensation
    • If you use independent contractors in conducting business, be sure to record and allocate their compensation properly.
  6. Take advantage of Tax Credits
    • Understanding this can give you a significant reduction in taxes depending on your taxable income and state of residence.

Numerous changes to the tax codes were observed stemming from the pandemic. Let TSAT help your small business navigate these for your business. This will allow you to focus on your business and have no worries about taxes.

At TSAT Accounting Solutions we offer a variety of services to not only generate reports but going deeper so that you can fully understand your business. These include Elite CFO packages to our Small business Starter Package. Don’t let accounting inexperience hinder your business! 

Accounting firms may all seem the same because you can’t change accounting standards and procedures, HOWEVER, at TSAT Accounting Solutions it’s the high quality of care and compassion that we have for our clients that makes us different.

Accounting with TSAT is the Trusted Solution!

Our Solutions:

-CFO Advising

-Financial Health Reviews

-Personalized Bookkeeping/Accounting

-Recon/Review Quality Assurance

-Payroll/Payroll Tax Filing

-Income Tax Preparation

Interested in learning more about us? Apply today! Contact Us!

Accounting with TSAT is the Trusted Solution!

Phone: (417) 208-2858

Email: info@tsataccountingsolutions.com or sales@tsataccountingsolutions.com 

“We want to Amaze our Clients not just serve them”. – Tabitha Smith