If you own a small business and are worried about your taxes, you aren’t alone. Ever year, business owners worry about tax deductions when filing and paying their annual taxes. Some worry they have too many deductions while others worry they may not have enough. The biggest worry and question alone is, “Will I be audited?”
Outright.com offers a great service to small business owners. If you don’t want to hire a book-keeper or need help organizing your business transactions, Outreach makes it easy for you. Outright allows business owners to try their services free for 30 days, and then after, its only $9.95/month. You can connect your Paypal or other bank accounts with their system, and instantly see your transactions. The service allows you to organize your business into expense categories and income categories. This way, you can see where you are spending the most money-and which clients are bringing you in the most revenue.
For those who are worried about their taxes, they can log into their Outright account and try out their new widget tool. The tax auditing widget allows users to see what the normal standard rate of tax deductions are in a variety of industries. The widget is simple to use and does not require any extra downloads. To use the tool, pick the industry that is most similar to yours. Then choose the “sector.” After you make both of your selections, it will give you a list of that industry’s average deductions. From here, you can decide if you are deducting too much-or perhaps-too little.
Along with their business services and free widget tool, Outright has a list of articles that can help you with all of your accounting questions. Some of these articles will be of assistance to you when it comes to tax filing season as well. Some of the archived titles include ones such as :
“What is bad debt?”
“What are Accounts Payable?”
“Cash vs. Accrual”
“How does depreciation work?”
Bigger businesses or small business with employers may also benefit from online tax calculators. One calculator allows business to calculate their annual profit, the taxes of the corporation and the distributable profits for dividends called the Limited Company Calculator. To use the calculator, you enter the annual revenue, gross salary(s), annual expenses and annual pension contributions. Once you have entered all of the information, it calculates all of the information you need to figure out your profits.
A good tip to always remember, should you ever be confused about any tax questions you may have for your business, there is plenty of information available at the IRS website. You can also download extra tax forms that you need to calculate your business deductions. If you are still afraid about an IRS tax audit, you can also benefit from the video, “Your Guide to an IRS Small Business Audit.
As long as you keep all of your business records and important documents, there shouldn’t be any reason to fear an audit. Stay true to your businesses income and net loss, and you should be able to avoid any red flags that you might give to the IRS. Always keep yourself educated and up-to-date about small business tactics, so you don’t have to stress out when it comes to tax time.