Note: If you want to use a top rated expense tracker for small business owners, try Bonsai Tax. Our application could scan your bank/credit card statements to discover potential tax write-offs and maximize your tax savings. The answer is to use a business expense tracker app for your small business. How do you ensure you have all the required documents to not only file your tax on time but also increase your business revenue by claiming write-offs? Wondering why a business would fail to file their taxes? Lack of all the relevant documents, especially financial records, required to complete the process.Īnd now to the million-dollar/thousand-dollar question. The main reason for this is the failure to file taxes or pay payroll taxes. Here is another fun fact, every year the Internal Revenue Service (IRS) imposes millions of dollars in penalties on small businesses and independent contractors.
However, this will be hard to claim unless you are properly tracking your mileage and can distinguish between miles covered doing personal activities and miles incurred on business trips. Wondering how? It’s because they lack the proper paper trail required to claim a write-off when filling out the 1099 form.įor example, if you use your personal vehicle for business activities you are entitled to a tax deduction of 57.5 cents for every business mile driven. Here is a fun fact, every year small businesses and freelancers end up losing thousands of dollars because they overpaid their taxes.
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