Are you a small business owner who just found out that you owe taxes this year, but are short on the cash to pay your dues? If so, then you might be able to use invoice factoring to cover your tax debt. For peace of mind solution, factoring can help you avoid huge tax debts, and late filing fees.
In the meantime, here are some helpful tax tips for small businesses. Keep funds seperate -- Sole proprietors take heed... even though all of the funds that come into your small business are yours, it is a good idea to keep the money separate from your personal expenses. Why? Because at tax time, by separating your expenses, you will find that it is much easier to keep track of your expenses.
It makes it easier to calculate telephone deductions when your taxes are due if you keep a separate business telephone, even your cell phone.
Did you know that your business cards, domain name and website hosting, advertising, plus other office supplies are deductable. Plus, fifty percent of your business related meal or entertainment expenses are deductible.
Use your debit card or checks to pay expenses from your business account. Avoid cash withdrawals. And for those people who are contributing to a retirement plan can deduct those costs. The same goes for your health insurance expenses.
As for your vehicle expenses --gasoline and parking costs, oil, tolls and even insurance can be deducted instead of your mileage. Small business owners can take either the standard mileage deduction or the actual expense deduction but parking is deductible even if you choose the mileage deduction. Or, rather than recording mileage, be sure you use a mapping website like Mapquest.com to calculate the mileage only to and from business-related destinations.
you may deduct that percentage of space and a portion of household expenses, including utilities, if you work at home.
And don't forget, long used as a way to provide peace of mind, you can sell credit-worthy invoices to an accounts receivable factoring company who can help you acquire additional funding for immediate working capital to pay taxes.
When the time comes to file, e-filing is fast, accurate and easy. Most available tax preparation programs check for errors and necessary information. This increases the accuracy of the tax return, and the need for correspondence with the IRS to clarify errors.
Taxpayers can usually file a state tax return at the same time they electronically file their federal return. The IRS electronically acknowledges receipt of the return once your return is accepted for processing. your refund will be issued in about half the time it would take compared to filing a the return by paper and mail - if you file electronically.
When it comes to your IRS and tax questions, check the small business and Self-Employed Tax Center at www.irs.gov.
Kristin Gabriel is a writer who works with The Interface Financial Group (IFG), North America's largest alternative funding source for small business. The company provides short-term financial services such as invoice factoring to clients in more than 30 industries. IFG offers expertise in accounting, finance, law, marketing and banking. Go to www.ifgnetwork.com to learn more about factoring.
