Bookkeeping, Taxes and other things you hate to do Wray Rives, CPA President NeedaCFO.com

Topics What bookkeeping does for your business and why you should bother Common deductions and how to make sure you don’t miss out Home office deduction and what it does for me Preparing for the taxman today instead of April 14

What bookkeeping does for your business and why you should bother

Common deductions and how to make sure you don’t miss out

Home office deduction and what it does for me

Preparing for the taxman today instead of April 14

What bookkeeping does for your business and why you should bother As the business owner you have to generate revenue, fund expenses, calculate taxes, track and report contractor payments and prepare year end tax returns Bookkeeping is the key to all these responsibilities

As the business owner you have to generate revenue, fund expenses, calculate taxes, track and report contractor payments and prepare year end tax returns

Bookkeeping is the key to all these responsibilities

Common deductions and how to make sure you don’t miss out Travel, meals & entertainment 50% or 100% deductable Mileage-trips to post office, FedEx, UPS Shipping Costs Subscriptions, memberships Ebay & PayPal fees Depreciation (can write off most computer equipment) Cost for inventory purchased Get a separate business checking account (online bill pay) Get a separate business credit card

Travel, meals & entertainment 50% or 100% deductable

Mileage-trips to post office, FedEx, UPS

Shipping Costs

Subscriptions, memberships

Ebay & PayPal fees

Depreciation (can write off most computer equipment)

Cost for inventory purchased

Home office deduction and what it does for me Area used regularly and exclusively for business sq. ft. office/sq. ft. entire house X rent, interest, repairs, insurance, utilities, internet connection, property taxes Form 8829 Separate rules when you store inventory at home

Area used regularly and exclusively for business

sq. ft. office/sq. ft. entire house X

rent, interest, repairs, insurance, utilities, internet connection, property taxes

Form 8829

Separate rules when you store inventory at home

Preparing for the taxman today instead of April 14 Do you remember what you did 14 months ago? (Ebay keeps 90 days of history) Give your accountant access to your bookkeeping records Quarterly estimated tax payments 1099 for contractors

Do you remember what you did 14 months ago? (Ebay keeps 90 days of history)

Give your accountant access to your bookkeeping records

Quarterly estimated tax payments

1099 for contractors

Taxes Self employment taxes Social security: 12.4% of first $106,800 income Medicare: 2.9% of all income Income taxes Based on total household income Quarterly payments 1 st quarter: April 15 2 nd quarter: June 15 3 rd quarter: September 15 4 th quarter: January 15 Penalty for underpayment Interest on the amount of underpayment-4% No penalty (safe harbor provision) if you pay: The same amount you paid last year OR 90% of what you should pay this year

Social security: 12.4% of first $106,800 income

Medicare: 2.9% of all income

Interest on the amount of underpayment-4%

No penalty (safe harbor provision) if you pay:

The same amount you paid last year OR

90% of what you should pay this year

Wray Rives, CPA http://www.needacfo.com [email_address] Get Started at Outright.com Questions?