Through the years of working with entrepreneurs & through my own journey, I discovered that most self employed people do not have an accounting/money management system in place or a strategic tax plan. Statistics show that 90% of businesses fail because of this very thing AND that 90% of business owners over pay their taxes. A lot of entrepreneurs avoid putting these systems in place because of their lack of knowledge or fear.
I love to help consult & coach women entrepreneurs to breakthrough procrastination & create systems to manage & multiply their money through strategic tax planning, accounting management & business mastery so that they can have more money, more choices & more time with their families!
In my 17+ years of preparing and consulting on business taxes, I have found that there are many deductions that most business owners miss. Here are 3 of the top missed business deductions to help you find hidden profits!
3. Converting personal assets to business use: When most people start a business, they have personal assets that they start using for their business. The most common assets are phones, computers and office furniture. The fair market value of your personal assets can be a business deduction starting with the date you first started using them.
2. Tax Preparation or tax software Fees: Yes, you can write off even your personal tax preparation or tax software fees. This is almost always missed! Keep track of this expense every single year!!
1. Not understanding business structures (a LLC verses, Sole Proprietor & Incorporating), deductions and the tax implications! Most people do not understand which entity is best for their business, how taxes affect them or what taxes they are responsible as an entrepreneur. Most people have “jobs” where taxes are taken out of a paycheck, but once you become self-employed, you are responsible for those taxes, for quarterly estimated taxes and more.
Not knowing what you are responsible for cost most self-employed people money with missed deductions, penalties & money saving tax strategies! The IRS estimates that people over pay their taxes by about $945,000,000 (YES that is BILLION) because they file their taxes themselves. They usually make mistakes in record keeping, as well as tax preparation. Plus, they do not know or their Accountant/CPA does not offer any money saving tax strategies.
For years, I have been helping high income earners and professional entrepreneurs form Smart Corps which save them thousands of dollars every single year using my signature tax strategies. If after reading this blog, you think that you may have missed money saving tax strategies or you are avoiding money & tax planning all together, connect with me for a complimentary income & tax strategy session to find hidden profits in your business!
Anything that we avoid or that is fear based always creates blocks & larger problems in the future! Especially when it comes to money & taxes! Do it now, so that you can begin to realize your full potential in business & your life!