Frequently Asked Accounting Questions
How do I know what expenses are tax deductible?
Many expenses could be tax deductible. The most common ones to look out for include business start-up costs, cost of supplies, office or business expenses, salaries, travel, rent, and more. However, there may be tax deductibles you’re unaware of and costing you your return. Our professional accountants will be able to clear up any further questions when they assess your documents.
What is the best way to maintain accounting records?
The best thing you can do to maintain your accounting records is to find the right bookkeeping system or software for your business. Most software programs will let you track expenses, income, and taxes all in one place. Make sure you have a regular schedule for updating your books so that you never fall behind. If you need help picking an accounting software, reach out to us!
What are the best ways to separate my business and personal finances?
There are several steps to take to separate your business and personal finances, including:
- Applying for an employer identification number
- Establishing your business type
- Opening a business bank account
- Pay yourself a salary
- Separate receipts
- … and more!
For more help with keeping personal and business finances separate, reach out to our hands-on accountants.
When should I consider outsourcing my accounting?
If you’re running a small business, there are several signs that you need to outsource your accounting functions. These can include:
- Reaching more than $1 million in revenue
- Growing in size as a company
- Accepting investor capital
- Accelerating your growth
- Requiring sophisticated financial reports for decision making
- Struggling to file your taxes on time and accurately
If you’re feeling overwhelmed by managing the accounting needs of your business in-house, you should consider outsourcing to a professional firm regardless of the tips above.
How can I find an accounting firm near me?
There are likely many accounting firms in your area, which means you’ll need to choose between them. Look for an accounting firm that is in a convenient location, has the proper certifications, has successful industry experience, and charges low advisor fees. If you’re looking for these qualities, you’ll find them at Khangura CPA Professional Corp. We’re the top local choice because we bring all these elements to the table.
How can you help me grow my business?
Accountants are experts at managing money, meaning they’ll be able to help you find ways to use your resources more effectively. This can include offering strategic advice, generating ideas to save money, and finding ways to boost revenue. We also allow you to focus on the core function of your business, letting you pour time and energy into what you do best.
What records should I keep?
You should keep the following records for at least six years:
- Business expenses
- Sales records
- Accounts receivable
- Accounts payable
- Customer list
- Vendors
- Employee information
- Tax documents
Depending on your type of business, there may be more records to keep track of. We’ll be able to help you determine more specific guidelines after discussing your situation.
What business expenses can I deduct?
As a business, you can deduct many expenses, including:
- Start-up costs
- Supplies
- Travel
- Office expenses
- Salaries
- Rent
Depending on the nature of your business, there may be other deductible expenses that are less common. With more specific information, we could identify other expenses eligible for deduction.
How should I prepare for tax season?
Ensure you gather all your documents, receipts, and personal information and take them to a certified tax preparation accountant. A professional will ensure you don’t miss anything that could result in tax issues or improper returns.
How does better accounting affect my bottom line?
Hiring a better professional accountant can better monitor and control your finances, helping you make more informed decisions regarding purchases and expansions. We can help create and stick to a budget, track your financial efficiency, and find ways to better save your money.
What are the advantages of outsourcing payroll to a service provider?
There are many benefits to outsourcing your payroll to our team of professional accountants, such as:
- Saving time
- Minimizing expenses
- Eliminating mistakes
- Guaranteeing code compliance
- Responding to concerns and questions
We’ll give you confidence that your payroll has been completed properly and have the expertise to help address any questions or problems you might have.