Starting a new business can be as confusing as it is overwhelming – and don’t misconstrue the two. Confusion can be figured out in time, but an impending sense of dread is a little harder to overcome. Fortunately, those who’ve climbed similar mountains before you are happy to offer their advice and experience when it comes to navigating the nuances of launching a new business venture. One such knowledgeable financial executive with decades of experience is Todd Katz of Quest Integrity, who previously helped lead a company from $14 million in revenue and 50 employees to $75 million in revenue and 280 employees. It’s that kind of first-hand experience which will help lead those in the beginning of the business career toward profitability. Below, we’ve outlined a number of tax tips for the new business owner that Katz has identified as important aspects to understand. This can be one of the most confusing sectors of starting a new operation, but eventually overcome with a helping hand that’s also pointing in the right direction.
– Business and pleasure: If you want to keep your fiscal matters in order, then don’t mix business and personal accounts. Not only is this an important step if you want to keep things from getting too confusing, but a possible audit around tax time could prove to be an enormous headache.
– Deductions: One of the tax aspects unique to being self-employed or running your own business are deductions. “Ordinary” and “necessary” expense as well as automobile expenses and the home office set-up are ways to get more money back around tax time.
– Helping hand: For the first few years, you’ll probably want to enlist the help of a certified public accountant to help you complete and file your taxes. While it’s important to remain within the boundaries of the law, it’s equally important that you pay attention to the work that’s getting done so that you’ll eventually be able to do your taxes on your own.