1. Keep Good Records
The most important thing you can do to prepare for tax time is to maintain a complete and accurate set of books — as well as adequate documentation. In other words, keep your receipts! Without proper documentation, the IRS may disallow your business expenses. Good record-keeping goes a long way toward ensuring that nothing is missed.
2. Separate Business and Personal Expenses
The IRS scrutinizes personal expenses that may have been claimed as a business expense. Maintain a separate bank and credit card for your business.
Friday, April 19, 2013
Business Taxes: Ease Tax Prep Burden, Avoid Audit, and Claim More Deductions | BookKeeping Express
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This question is ambiguous. The answer depends on whether the business we're talking about is a corporation or not, for federal income business tax purposes.
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