Recently, I’ve received a few phone calls from entrepreneurs asking about all the tax deductions that they’re allowed to deduct in their coaching business. And I gave them the normal spill that your deductions are dependent upon your business activities, purchases, and if it’s a profit motive behind the business. You know that didn’t go so well. Caller #2
says well what can I deduct , do you even know? I said you should know what business expenses you’ve incurred. Are you doing bookkeeping? Do you have records of all your purchases? Caller # 2 hung up but Caller #1
admittedly said no I don’t have anything. I’ve been using PayPal to run my business and that’s all I got.
I asked her two more questions and you have to answer these to:
1. Do you know that without proof of your expenses all tax deductions could be wiped out by a mean IRS Agent?
2. Do you know that if you don’t track your expense via bookkeeping you will lose tax deductions?
She said nope to both questions. Did you answer no to both questions? If so, then being concerned about what you can deduct on your taxes is irrelevant. Your concern would be that you don’t have bookkeeping and are missing expenses and tax deductions RIGHT NOW.
If you’re like Both callers and isn’t doing your bookkeeping love, I must swing controlling what you pay in taxes is not possible. Also your chances of winning an IRS audit is slime to none. Beloved, instead of goggling tax deductions for ______, start doing your bookkeeping, it protects your business and taxes.
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