Owning a small business can give you an edge at income tax time, if you are armed with as much information about business tax credits and deductions as you can.

Since small business owners are three times more likely to be audited by the IRS than a non-owner, it is very important to have accurate information, and to make sure you qualify for the credits and deductions you are claiming.

This article will touch on a few tax deductions available to business owners.

What deductions can you safely claim? You can claim business tax deductions on things that are reasonable and necessary to run your business. This could include your home office, office supplies, furniture and equipment, mileage necessary to operate your business, travel, dinner and entertainment expenses.

It can also include real estate tax, mortgage interest, depreciation costs, insurance, rent, security systems and utilities and services like phone, internet and garbage collection. Health insurance cost and liability insurance costs may be taken as deductions.

With this many items or more to think about, it is important that you have the most recent and accurate information about small tax credit and deductions.

It is also important to know about self-employment tax as your obligation for contributions to social security and any real or potential retirement contributions to a SEP/IRA. There is help for you.

Since I know that as a small business owner you are independent minded and like to do things on your own, you may find an on-line small business tax preparation program helpful. Such a program can walk you through all the deductions and credits, so that you will know when you file that you have taken advantage of all the credit breaks you deserve, and have met all the qualifications required by the IRS.

You want to feel that if you are one of the “three times more likely”, that you are in the best possible standings you can be for that audit.

Owning a small business can be rewarding and give you a break at tax time. Make sure you have as much accurate information about small business tax credits and deductions that you can. An on-line tax preparation program may be just what you are looking for to keep that edge.

By: Frank W Ellis

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Kansieo.com

Proper organization is crucial for internet marketing entrepreneurs. Excessive files, emails, websites, vital information and documents-so many files to deal with. Those who work on the internet require so much storage that it can become overwhelming. If you are disorganized, your business will surely suffer because you will waste unnecessary time looking for things when you could be investing it into growing your business.

The first step is to separate your home and work files. If you can, create a work office space completely separate from your home computer and files. This will make it easier to stay organized. Start with your email and divide them into categorized folders (i.e. tax information, follow-up, customer emails, favorites, etc.). Once they are categorized, further divide into subcategories. For example, your customer emails can be separated into replied, to reply, inquiries, or even by customer name.

Organize your folder structure the same way you did your emails. Start with a broad subject like “Internet Marketing”. This will denote your entire business. Next break it down into sub-folders, similar to “My Website” or “Affiliate Programs”. Continue to create more folders out of these subfolders until all of your files are in a specific folder describing its functionality. About four times a year, take an hour and purge the files you no longer need. Not only will you stay organized, but your computer will stay running faster and more efficiently if it is not cluttered.

Keeping track of finances is especially confusing and it is imperative you create a system which works for you. Are you the type of person who searches for your receipts and just can’t seem to find them when you need them? You are not alone. It is much easier to track your finances if you come up with a simple system and stick to it. The paid software, Quicken, is a great program for financial management or you can use Mint.com which is free. Quicken is a little more sophisticated and may suit you if you own a business. Keep your money matters in one place in your office and at the end of the day file your receipts into designated folders. You may want to consolidate credit cards and opt out of pre-screened offers to cut down on the incoming paper. Make sure to visit your finances on a weekly basis. It will only take about thirty minutes and it will prevent a future mess.

As you continue to organize, you will develop reproducible systems and you will notice yourself organizing further to streamline your processes. Just stay focused and stick to your systems and you will feel less cluttered and have more time to focus on growing your business.

By: George Metzger

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