Whether you are a business owner, a CPA or Tax Preparer, here are 4 more ideas and reminders about your 2017 taxes to help you save money and retain more of the revenue you bring in.
(1) Are you or your client running a POS (point-of-sale) system and paying fees for software and support – have you/they downloaded the updates?
Make sure that you are getting the updates you need and you are paying for to be compliant with PCI standards.
Remember the upcoming deadline for TLS? Now is a good time to run the software update and make sure the business is safe and secure.
(2) Does the 1099K match sales including tips and taxes?
This is a common issue with POS processing and if it isn’t set up correctly, the reporting may show 1099K amounts that are not accurate. Be sure that they match what was actually paid to the employee in your service based business.
Not sure if the POS is set up correctly, please ask.
(3) Are you (or your clients) getting the most out of depreciating hardware – POS, Merchant terminals and Software?
If the credit card processing covers the cost of hardware paid over time, be sure that this is allocated properly in the depreciation. This is an audit risk that many don’t realize is out there.
(4) Cash and Check Income is Recordable!
Of course, everyone knows this but sometimes they forget how it relates to the owner’s “end game” when it comes time to sell the business. Be sure to recognize income consistently to make the most out of the future value of the business. This is often worth 2 to 3 times cash flow, sometimes more. Accepting credit cards and being able to show business growth is far more valuable than you realize.
If any of these ideas made you think you might need help, let us know. CPAs and Tax Preparers, please request our free TransAct Tax Tip tablet to help you this upcoming tax season.
~ Mary Ann