income tax return grapevine tx

Tax Refund In Grapevine, TX: 6 Financial Mistakes To Avoid

tax refund grapevine txIf you own a small- or medium-sized business, you know the importance of maximizing your tax refund in Grapevine, TX.  You should also know that a maximized tax refund only happens when you make as few financial mistakes as possible in your business.  Mistakes in accounting and tax preparation may not only leave you with less money back from Uncle Sam in April, they may also leave you with an audit you’re not prepared for.  Here are some common mistakes you should avoid to get the biggest possible tax refund and sidestep a visit from the tax collector:

1 – Trying To Do Everything Yourself

Sure you may be the CEO, CFO and COO, but that doesn’t mean that you know how to do everything in your business.  Just as you would leave the creation of your business’s website to a professional web developer or leave your computer system setup to a professional IT consultant, you should leave your bookkeeping and tax preparation to an accounting professional.

2 – Not Using A Tax Organizer

If you don’t know what a tax organizer or tax diary is, you probably need one.  Keeping receipts is a good thing but a tax organizer is a detailed record of everything financial an IRS auditor might question you about, from travel to entertainment and more.

3 – Borrowing From Employee Withholding

The trust fund for employee withholding and Social Security isn’t your personal petty cash, even if you have been putting the money aside yourself.  Once the money is in the trust fund, it’s no longer yours to do with as you please and dipping into it could come with big penalties.

4 – Not Using A Professional Bookkeeper And Accountant

No matter what size your business is, you must ensure that the person who writes the checks isn’t the same person who does the accounting.  If you have a trusted family member who can do both, you may not need professional help; but most people don’t have the luxury of having a family member who is both good with numbers and incorruptible.

5 – Not Knowing What You Can Deduct

Get as much of your money back from the government as possible.  Did you have your suit dry-cleaned while you were away at a conference?  The dry-cleaning may be deductible if you stayed overnight.  Did you have dinner with friends at which you discussed your business.  Dinner may be deductible if the discussion of business happened within 24 hours of the meal.  Know what you can deduct to maximize your tax refund in Grapevine, TX.

6 – Making All Your Employees Independent Contractors

Full-time and part-time employees are more expensive to employ than independent contractors.  So why not make everyone who works for you an independent contractor?  Because you don’t have as much control over when and where independent contractors work as you do regular employees; and the IRS will find out if you improperly designate people acting as regular employees as independent contractors.  You may be subject to penalties for not collecting Social Security taxes, and for more than 40% of worker’s compensation for the time period during which you improperly designated employees as independent contractors.

When you need help with your bookkeeping, accounting and tax preparation that will maximize your tax refund in Grapevine, TX, call me, Alfredo Robledo, Certified Public Accountant, PC, at (817) 421-0720 or visit me online at www.grapevinecpa.com.                  

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