Many small business owners have done their best to produce a decent profit and, in doing so, face the prospect of paying more in taxes for their efforts. We all have to pay our share of taxes, however, many businesses are still unstable and are struggling to make a profit. As we all know, there are times that the profit is on paper, not in the bank. So coming up with additional funds to pay Uncle Sam after fighting to stay afloat is not an easy task.
Fortunately, there are some effortless moves you can make that will reduce the amount of profit “on the books” and support growth. Here are four tips you can prepare for in advance.
1. Paying in advance for things you need tomorrow.
The first step is to simply prepay for many supplies and goods that you use to produce your product or service. This serves two primary purposes. It will help minimize your expenses right out of the gate for a very uncertain 2013 and if done properly will give you a quantity discount when placing a higher volume order.…
One of the most compelling tax breaks is coming to an end in the near future. Internet sales are booming and the incredible tax savings that comes from buying supplies or equipment off the internet might soon be over.
Before legislation speeds up this process, it is important to take advantage of this huge loophole and the overall savings that can be realized.
Products purchased from the Internet often cost less.
Buying just about anything from the Internet offers not only a break in paying sales tax, but often a cost savings over local retailers with hefty leases and greater operating costs. So it’s often a double savings from buying local.
Think about purchasing higher quantities to take advantage of large volume discounts and be prepared to be surprised at the savings.
Internet shopping often saves on shipping.
Many Internet retailers can even offer free shipping, while simply absorbing the cost and still bring in a higher profit margin than a retailer that runs out of a brick-and-mortar storefront establishment.…
In today’s competitive business world, many businesses are cutting expenses and saving money on payroll taxes by using independent contractors. Small businesses can be competitive and even experience growth by using contractors and keeping prices in check, however, there are criteria to consider before going this route. Be advised that the government isn’t a fan of losing employment taxes, so it is extremely important to follow the rules or find ways to work around them.
Independent contractors have a place in most companies.
When your company requires assistance from workers who can perform their duties on their own schedule without outside aid, independent contractors make the most sense. If the duty must be performed at a mandated time and in a specific place, the worker will be considered an employee by the Employment Development Department (EDD).…
There are many things that you can deduct for your small business, but how can you make sure the government will see things the way you do? You might have a list of many business deductions, but making sure they are legit and easy to track is the bigger battle. Setting up deductions as expenses and keeping business expenses separate from personal expenses is the essential first step.
Pay for business expenses from a business bank account, credit card or PayPal.
Many small business owners are able to grow their business quickly, but organize their expenses and look for deductions toward the end of the year. To avoid end of the year angst, it is much easier to use a separate credit card and/or bank account to pay for your business expenses as opposed to constantly reimbursing yourself on the fly.
Keeping things separate will make business expenses easily identifiable when tax time comes.…
Over the years Zoho Invoice has proved to be an efficient invoicing software for small businesses. Sebastien Guardiola, the co-founder of KAPT, an award-winning mobile apps start-up in Southwestern France, has been enjoying using our invoice software for a long time.
Sebastian, who loves skiing in Alps had a lot of things to share about his company and experience using Zoho Invoice. KAPT which has been always innovating since its inception has come out with marvelous applications. Ou Dormir, an accommodation finder app and KAPT Touch, a communicating kiosk are those i can think of as of now.
KAPT has been able to easily organize its billing and streamline its invoicing process using Zoho Invoice. A mobile apps lover himself, Sebastien uses Zoho Invoice’s iPhone app to invoice his customers on the go.
As Sebastien says “Most of the times, we travel to our client places by bike or train.
Our accounting software continues to entice the customers by simplifying and streamlining their accounting processes. One of our happy customers, Jerome Schultz, General Manager of Mobafone GmbH found Zoho Books to be perfect for his business needs. His company engages in mobile application development and mobile service consultation. Being in the industry for more than a decade, the company aims to create unique customer experiences in the mobile internet space by developing the most innovative mobile apps.
Jerome is based in Germany but he frequently visits Mobafone’s offices in Thailand and Indonesia. Jerome would be away from Germany for almost half a year which means he has to record mutiple transactions while he is on the move. As Mobafone’s operations spans three countries, accounts have to be up-to-date which would also involve multi-currency transactions.…
Whether you are on a yacht or sailing on a powerboat, invoicing is just a breeze through. You can stay connected with your business even while you’re sailing. Our customer Graeme, who runs one of Scotland’s premier RYA recognized sailing schools does exactly that. His company 1st Scotsail Training trains hundreds of its customers on its dedicated training yachts. Our invoice software has helped Graeme save enormous amount of time on his bookkeeping related activities.
I now get a lot of time to concentrate on my business. Zoho Invoice has helped us achieve more scalability. – Graeme Kerr, Co-founder – Scotsail
Our invoice program is so simple to use that most of Scotsail’s employees create and send invoices on their own to their clients.Thus it helps increase efficiency and saves lot of time.…