One challenge for many small business owners is understanding the financial reporting aspect of the business. It is important to have a comprehensive picture of where your money is going and who's handling it. The accounting procedures you put in place will be key to this, but you still have to be sure that everything is accurate. To do this, you need to have controls in place with your accountants to ensure that everything is being done according to plan.
Payroll is an integral part of your business. It can often be complex, but it is necessary in order for your company to run successfully. It can become less of a frightening task if you look for ways in which you can reduce time, stress and errors related to the processing of payroll. No matter how large or small your company is, here are five tips to help you get the ball rolling on a smooth, proficient payroll system:
Independent contractors are often on their own when they have to do their taxes -- and this can lead to some significant mistakes. If you want to be conscientious about your taxes, the best thing to do is to consult with an accountant before the tax year is over, rather than when you actually need to complete your tax return.
1. Not Booking Their Expenses for Fear of Audit
The idea of an audit is terrifying to most, but many independent contractors are especially frightened of it because their tax return is more complicated than a normal 1040-EZ.
Not being aware of certain tax deductions can really cost you when you file your income tax return. Unfortunately, many taxpayers aren't aware of some of the most common and largest deductions they can make.
If you're itemizing deductions on your tax return, you should be aware of the following seven deductions to minimize your tax liability:
Health insurance premiums- Medical expenses can be very difficult to afford. This is especially true for those with chronic health conditions.
If you provide child care, cleaning services or health care in the home of your employer, it's important to understand the financial relationship you have with that person. Otherwise, you may not only open yourself up to extra taxes but also to risk that you're not even aware of. How so?
Employee or Independent Contractor?
Employers are responsible for paying payroll taxes and providing certain basic rights. But many employers try to skirt the rules and the cost by calling a worker an independent contractor rather than an employee.