Small Business Owners: Keep Track of Financials All Year Long

Keeping accurate records of financial activity throughout the year and properly deducting business expenses will help small business owners succeed.

2012-11-06

November 06, 2012 (Press-News.org) Owners of small businesses typically have numerous issues and responsibilities monopolizing their time. As a result, particularly for those without a background or expertise in accounting or tax law, it can be difficult to ensure the financial structure of the business is organized in the most advantageous fashion. In addition to the tips set forth below, in many cases, it may be wise to consult with an attorney with proficiency in financial legal issues to protect the financial security of the small business.

Small business owners often forget to reconsider the business structure as the business matures. The business structure is one of the first choices a future business owner must make when establishing the business. The entity appropriate for the business may change over the years, though, depending on the financial success of the organization. For instance, as the business becomes more profitable, it may be wise to change the structure to protect the owner from financial risks and improve the tax implications.

Additionally, while it can be easy to get caught up in the day-to-day financial health of the business, this focus is often to the detriment of the business owner's personal financial future security. It is prudent for all small business owners to establish a plan for retirement. There are many options when it comes to retirement plans, including:
- Simplified employee pension (SEP)
- Individual retirement account (IRA)
- Keogh pension plan

Another wise step for any small business owner is to keep track of the business' financials, including expenses and revenue, consistently throughout the year. Small business owners are entitled to a variety of tax deductions based on the business expenses during the year. By keeping records of these expenses throughout the year, it will not only ensure the information is accurate, but will also allow for a less stressful process once tax season rolls around.

Plan Ahead for Tax Payments

To ensure the business is paying the appropriate amount in taxes, small business owners should periodically evaluate the estimated tax payments for the year. By doing so, they can ensure the business is not charged a penalty for underpaying. Conversely, if the business is overpaying, the money being overpaid could be better spent by the business.

As noted previously, small business owners should keep accurate records of expenses, to ensure proper deductions are taken on their taxes. One common deduction for businesses is write-offs for equipment purchases. Currently, certain purchases qualify for a 50 percent depreciation deduction during the year in which the product was purchased and used.

Protect the Financial Future of Your Small Business

By taking advantage of all the tax benefits available to small businesses and keeping accurate records of financial activity throughout the year, your small business will be able to thrive financially. If you are uncertain about the best course for your business or how to maximize the business' financial success, discuss your options with an experienced business law attorney.

Article provided by Schifanelli & Associates, LLC
Visit us at www.marcschifanelli.com

ELSE PRESS RELEASES FROM THIS DATE:

Do Arizona's Red-Light Cameras Make Intersections Safer?

2012-11-06

This is the question that many Arizona city and county officials are asking as they attempt to determine how red-light cameras impact road safety. There is debate whether such programs decrease auto accidents, and if red-light cameras should continue to be used. Red-light cameras are used in intersections to enforce traffic laws. The cameras take pictures of motorists who run traffic lights and the city then issues a traffic citation to the driver through the mail. Camera companies - two of which are based in Arizona - opine that red-light cameras are safe, cost-effective ...

Study Shows that Financial Incentives for Drivers Reduces Speeding

2012-11-06

Speeding kills. According to government statistics, approximately 12,000 Americans die every year in car accidents caused by speeding. Officials have attempted to reduce speeding on United States roads in many different ways, but nothing has had a dramatic impact. A new study, however, may have found a way to decrease speeding and keep our roadways safer. In a study partly funded by the National Highway Traffic Safety Administration (NHTSA), researchers placed a small GPS device in participants' cars. The GPS system reported the speed of the car against the posted speed ...

Hydraulic Fracturing Brings Risks and Rewards to Pennsylvania

2012-11-06

The advent of hydraulic fracturing has brought a whole new economy to Pennsylvania. Fracking -- which uses pressurized water, sand and chemicals to force natural gas out of underground pockets -- has unlocked a huge and previously untappable reserve of gas in the Marcellus Shale. In 2011 alone, the Marcellus Shale supplied 6 percent of America's natural gas. That number is only expected to grow as fracking technology becomes more advanced. Many people stand to make money off the Marcellus Shale fracking boom. Of course, the oil and gas companies have the most to gain, ...

New Process for Deferred Action Leads to Increase in Immigration Scams

2012-11-06

Recently, the federal government announced a new process for some individuals to gain authorization to work after requesting consideration of deferred action. On June 15, 2012, the Secretary of Homeland Security outlined the "Consideration of Deferred Action for Childhood Arrivals" plan. The new process will allow some people the opportunity to remain in the United States for a period of at least two years, with the chance to apply for a renewal thereafter. "Deferred action" means the government will choose not to pursue a removal action against the ...

Massachusetts Court: Anxiety During Traffic Stop Not Grounds for Search

2012-11-06

Picture in your mind the last time you got pulled over by the police. Between the loud siren, the flashing lights and the approaching police officer -- never mind the looming threat of an expensive traffic ticket -- you were probably pretty nervous, right? Maybe you fumbled with your wallet a little bit or acted anxious when you spoke with the police officer? If so, you probably didn't think that your reaction was all that unique or suspicious. In a recent case, the Massachusetts Appeals Court agreed. It ruled that nervous behavior alone is not sufficient evidence to ...

Wisconsin Law Combats Distracted Driving Among Novice Drivers

2012-11-06

Wisconsin safety agencies are extremely concerned with the dangerous habit of distracted driving, which is commonly practiced among teen motorists. Did you know that car accidents kill more teenagers in Wisconsin than any other cause of death? Distracted driving is a major issue that contributes to this statistic. To combat the issue, Wisconsin recently passed a new state law that prohibits drivers with an instruction permit or probationary license from using a phone while driving. The law takes effect in November 2012. A driver violating the restriction on cellphone ...

Dozens of Food Poisoning Cases at North Carolina County Fair

2012-11-06

Recent events involving widespread E. coli, listeria and salmonella poisoning, as well as pharmaceutical steroids tainted with fungal meningitis, serve as a troubling reminder of the hazards we all face from food and drugs on a daily basis. Businesses and institutions that are entrusted with providing safe and sanitary food and medicines to others are rightfully subject to product liability or premises liability claims when their products or unsanitary conditions cause illness or wrongful death. More than 100 attendees at the Cleveland County Fair fell ill in October ...

Two New Research Fields May Help Improve Lives With Paralysis

2012-11-06

Paralysis works almost unimaginably profound changes on the lives of those it touches. Daily activities become difficult and nearly insurmountable challenges. While technology has made some strides to help people deal with paralysis, paralyzed New Yorkers and other Americans have long waited for a bigger breakthrough. Two areas are showing increasing promise and paralyzed people may have a new reason to hope for more progress. The Food and Drug Administration (FDA) recently approved a new human study to continue exploring a treatment program that worked well in animals. ...

Atlanta Pest Control Company Team Pest USA Discusses the Correlation Between Heat and Insect Population

2012-11-06

Atlanta pest control company Team Pest USA would like to take some time to discuss the correlation between heat and insect population growth. You may have noticed the incredible amount of insects that seem to be buzzing around and biting each summer. There is in fact quite a disparity between insect populations in warmer months over fall and winter.. Last winter and fall were unusually warm. What this meant for insect populations was a lengthened breeding season. This longer breeding season last year lead to larger populations this past summer wreaking havoc on outdoor ...

Danny Bacher, CEO of Atlanta Limo Company Topper Worldwide, to Speak at the 2013 International LCT Show

2012-11-06

Danny Bacher, CEO of Atlanta limousine service Topper Worldwide, will be speaking at the 2013 International LCT Show, to be held February 5th through 7th, 2013, in Las Vegas. Bacher is a repeat presenter at the International LCT Show, having most recently presented at last year's conference. The International LCT Show is the largest limousine, charter, and tour industry show in the world. For 29 years, the International LCT Show has offered talks from a wide variety of industry experts, as well as networking opportunities, product showcases, and seminars at the MGM Grand ...