Profit or Loss?
Owning a business is costly. Who wants to pay for all those payroll taxes and business expenses? How can you get ahead? What about all those filings and taxes! If I pay between ¼ or 1/3 of my pay towards taxes, I can’t imagine what percent does business owner pays? BUT I have seen articles stating there are some million and billionaires who paid no taxes. How did that happen?
Power of Receipts! Schedule C is a form you can look to as a reference when determining what expenses you can write off. What is a write off? If you were to earn $100,000 but have $50,000 in expenses then you are held responsible on owing taxes on $50,000 instead of $100,000.
Did you know that you can apply some of your personal expenses towards a write off? Some examples are, if you were to have a home office, you can write off a percentage of your total rental and utility expenses. If you use your car for business, you can write off a percentage of travel expenses. These are just a small fractions of what you can write off.
Documentation can either break your company or be a main factor in maintaining your company.
Are you keeping the proper documentations for payroll, human resources, accounting etc? Do you have a checks and balance?
What filing system do you use?
What program do you use?
In your opinion, what are the benefits of owning your own business?
If you had to influence someone to start their own business what would you tell them?
If you would like to learn more about this topic, please feel free to take our Profit & Loss Workshop.