Tax season is here, Creative Bugs!
If you’re like me and wait until the last minute to start pulling everything together, don’t worry, we have you covered. We caught up with accountant Tiana Goodwin of J.E.R Accounting to get five simple tax tips for the everyday creative entrepreneur.
When first starting a business your funds may be limited. What is your suggestion on what type of paperwork should be filed immediately once you’re serious about starting a business?
The first thing you want to invest in is the registration of your business. You should register your business with the state and receive your Articles of Organization. The cost is usually around $150. Then you should apply for your EIN on irs.gov. This application is free and you will receive your EIN at the end of the application.
What are some deductions that are forgotten about when filing as self-employed or a 1099?
Common deductions forgotten about are interest paid on your car loan for the year, business mileage, cell phone expense, dues and subscriptions, hobby expenses, supplies, and office expenses.
What are some things home-based entrepreneurs should be doing on a monthly basis for accounting needs?
The most important thing home-based entrepreneurs should be doing monthly is making sure you properly track your expenses. There are a number of simple accounting software programs that entrepreneurs can use that will help simplify their business workings. ZipBooks and Wave are great for small to medium-sized businesses and QuickBooks or Sage for larger companies.
For entrepreneurs who use vendors are a project-based term, are they required to get a W9 from each vendor and issue a 1099 at the end of the year?
Yes, you want to make sure you get W9s for every vendor you use. This will also help you properly expense your transactions. You should also issue 1099s at the end of the year so your vendor can properly do their taxes.
Should your business, no matter how small, have a budget? And what should this look like?
Yes, of course. Every company’s budget will vary based on the industry. The main purpose of a budget is to control where your money goes and not let the money control you. A good way to set a budget is to examine your expenses for the past three months, then set a budget from there. You will then be able to see where you are spending and where you can make cuts.
J.E.R Accounting is currently offering 20% off for all your tax and accounting needs. Email them today to get a jump-start on your taxes or simply ask a tax question or two. Consulting services available as needed. #OrganizeYourFinances