Are You Sitting on Tax Savings?

With year-round tax season preparations and potential penalties looming for non-compliance, it’s essential for businesses to keep their financial houses in order.

In today’s Finance Pulse, gain insight into how:

• Overlooked expenses can become substantial tax write-offs, allowing businesses to maximize income and minimize taxes.

• Year-round planning and adhering to best practices can make the tax season a breeze for small businesses.

• Small businesses dealing with Form I-9 can avoid massive fines as stricter enforcement looms.

Each of these articles is penned by members of Forbes Finance Council, key luminaries shaping the future of finance.

Get the scoop on how to optimize your financial strategies and stay compliant!

📚 Master Business Tax Write-offs 

Tax deductions help business owners reduce the amount of income they pay tax on, allowing more capital to be left over for future growth and reinvestments.

Below are several areas to consider when accounting for your business’s expenses—to ensure you’re not leaving money on the table:

🎓 Business-related education: Spending on mentoring and training is more than traditional university expenses. Any knowledge that sharpens your business acumen can count as a write-off.

🍴 Document business lunches: Note who you met, why, and the discussion topic on the receipt. This rule applies to virtual meetings too!

🚗 Log vehicle expenses: Maintain records of mileage, oil changes, repairs, and other costs.

❤️ Factor in charity: Tithes, donations to nonprofits, payments for kids’ extracurriculars, or giving used goods to charity, all account for deductions.

✈️ Document business trips: The IRS needs substantial proof for travel write-offs. The trick is to manage these expenses throughout the year instead of cramming at tax season. A '12 by 12' approach: spend 1 day each month to review, categorize, and document your business expenses.

Minimize taxes and maximize income by staying on top of these expenses.

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⏱️ Avoiding the Tax Season Crunch

Eliminate your year-end tax frustration by preparing for tax season all year round! A member of Forbes Finance Council shares how to maximize tax savings and eliminate financial surprises.

👩‍💼 Hire the right accountant: They can manage payroll and cashflow, and bring insights into tax-saving strategies.

🗂️ Maintain meticulous records: Go paperless! Accounting software can generate invoices, monitor receivables, and track expenses. Plus, remember IRS requires a 7-year financial record history.

💰 Keep up with quarterly payments: Businesses expecting to owe $1,000 or more during tax time should make estimated quarterly payments.

🎁 Leverage tax benefits: You can write off depreciating assets, startup costs, rents, insurance premiums, and travel expenses.

⚠️ Sidestep audit pitfalls: Ensure your financial data is accurate, don’t misclassify employees, and keep personal and business expenses separate.

⌛ File taxes on time: IRS penalties can hit hard, so file an extension if you can't meet the deadline.

Start preparing for tax season now with these strategies! Be mindful that this info is not a replacement for a dedicated financial advisor.

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📑 Stricter I-9 Enforcement Ahead for Small Businesses

🚨 Come November 1, 2023, the Department of Homeland Security will fiercely enforce Form I-9 regulations, used by employers to verify an employee's legal work status in the U.S. Penalties for first-time non-compliance range from $272 to $2,701 per person, escalating to between $5,404 and $27,018 for further offenses.

Small businesses need to know that substantial fines can pile up for lack of proper documentation, leading to tens of thousands in penalties for workplaces with multiple employees.

Avoiding fines is easier than it seems, if employees comply and businesses keep their documentation in check. Employers need to ensure they're using the most updated Form I-9 and review the mandatory documentation required for each employee.

Employers, particularly those in sectors with high turnover rates or lower-wage jobs like hospitality, landscaping, construction, and farming, are advised to take a second look at their compliance status. Keep physical and digital copies of these records secure, get deficiencies corrected ASAP, and consider a second employee to review for full compliance.

Stay compliant and make audits a breeze rather than a financially draining headache. This info serves as a guide, and not a substitute for professional advice.

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Wrapping Up

If these articles sparked your interest, we have a network that you will absolutely love: Forbes Finance Council.

This exclusive, vetted community brings together the brightest minds in finance — founders, CEOs, CFOs, and other leaders of finance teams.

Put yourself at the forefront of innovation with access to publishing opportunities on Forbes.com, a personalized, SEO-friendly Executive Profile, and the chance to network with other respected leaders in the field.

Join Forbes Finance Council today, and become part of a group driving transformation in finance.