As an Orlando accountant I come across many different types of entrepreneurs. Are you a small business owner who hates to deal with taxes? Do you know what that is? The process is not that hard if you proceed about it the right way and take help down the road. Hire an accountant Orlando, and your taxes will become so easy to manage. Other than this, the accountant can also provide you with financial advice that can help you in earning the revenues you desire.
For right now, we have some tax suggestions that entrepreneurs must put into practice at their earliest.
We now you are an entrepreneur and you can perfectly manage and operate your business. What about finances? Can you manage them just as well? We do not think so which is why we want you to sign up with a reputed accountant Orlando. Yes, this dories add an outgoing cash flow, but the costs are worth it. At least, the burden will be off you and you can use your energy and time for something more fruitful.
Pay taxes on a quarterly basis
There are so many business owners who fail to pay the required amount of tax when they first receive their income. Surprising as it may seem, this does happen. If you do this, you will have to pay a huge amount once in a year. A better option is to pay quarterly taxes even if you are not sure of the exact amounts. Your chosen accountant Orlando can help you in deciding an estimated payment and you can make this after every three months. This will prevent you from paying a lump sum amount in taxes.
A few entrepreneurs avoid this strategy because they think that they may end up paying more. Should that be the case, there is nothing to worry because the IRS does pay you back through your refund.
Keep your personal and business owners
This is one suggestion that every business owner should engrave on their minds. Whatever you do, ever make the mistake of mingling your finances together because you become personally liable for your business. In case, you have already made this blunder, seek help of a skilled accountant Orlando. He will sort through your finances and put them in order. Once you are done with this, set up separate accounts for each so that you never make this mistake again.
Consider numerous options
Taxes can be reduced if you make use of deductions. Yes, the IRS is a very common one, but you can contribute to other plans as well. For instance, the 401 (k) and the Roth 401 (k) are great options because you can make higher contributions which implies reduced taxes.
Decide a suitable corporation type
Though you can choose your business to be any corporation, most people either form an S corporation or use the S Corp tax rules for LLCs, which makes you an employee. In such as case, you will set up a payroll and pay monthly tax payments.
The Not So Common Tax Deductions You Are Probably Missing Out
Do you want to pay the lowest possible amount in taxes? You guessed it right; the best way to do this is to make use of a deduction. But are you maximizing these? We do not think so. As such, we bring you the topmost deductions that can significantly lower your taxes. Read about these and if you have any questions, seek help from your chosen accountant Orlando.
We are sure you know you can use your contributions to charity as a deduction. Good enough, but did you know that if you go to a charitable event, the transpositions costs incurred can also be used as a deduction? Do no believe us? Ask your accountant Orlando. As such, we advise you to keep a track of all of these, and utilize them when it is tax time.
If you are a self-employed individual, you can make use of many deductions that employed people cannot. Be it your utility bill, the rent of your home, the magazines for which you have a subscription or the organizations of which you are a member, you can utilize all of these as deductions.
Was there a natural disaster in your area this year? Must have been a bad incident, and if you were not covered, you would have borne a financial burden as well. Well, that is over so let us focus on the now. Use the amount you spent as a deduction, and the IRS is going to be very generous.
Thinking about refinancing your mortgage? Get it done; it is a good idea if you consider the historically low mortgage rates that are being offered right now. So what tax benefits do you get form this? Your monthly payments can be used as a deductible.
If your insurance premiums are more than 7.5% of your income, you can use them as a deduction. This will be true even if your employer provides you with coverage. However, this clause is not applicable for self-employed individuals.
The IRS has a soft corner for people who are involved in educating others whether they are a teacher, a principal or an instructor. Buy materials for your classroom and you will be able to avail an above-the-line tax deduction, which means no itemization.
If all your finances are in healthy conditions, you may just be able to get a tax deduction. All expenses that you devoted to investment and tax preparation can be itemized and deducted if they are more than 2% of your income.
Do you and your partner both work? You will probably have a baby sitter or nanny for your kids, right? Use this as deduction, but in some situations, you only may only be able to utilize a fraction of the costs. Moreover, if your kid is above a certain age, then also there may be limitations.
If you need more information about our Orlando accounting and tax services, please contact us at 407-502-2400. Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years. Our Orlando accounting and tax firm has its main offices in Kissimmee, FL. Our services are provided nationwide, but mainly in the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, Clermont, Davenport, and Hunters Creek, FL. Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin numbers, incorporations, and non profit 501c3 tax exempt status applications.