The stores are already decorated for the holidays, selling with the year’s end in mind. We are definitely closing in on the 2017 year wrap up and we have 3 things accounting professionals should know related to business tax planning and business reviews. If you own a business or are in the accounting, bookkeeping and financial industries, here are somethings to consider when reviewing the 2017 fiscal year.
NOTE: Even if you are not a tax professional – as a business owner – you must do everything you can to make the most of this last quarter and be aware of tax deductions where they are applicable to your business.
- Is the business running multiple processors for different areas of the business (swiped/keyed/online)? We can help you know what to look for and why is this a risk to the business owner.
- Credit card service processing fees are typically a tax deductible expense. This is both at the federal and state level in some areas and can be a huge benefit to the business whether a small or a big percentage of the revenue is paid via credit.
- Are the surcharge fees collected higher than the processing fees paid? (This is a possible risk which can incur a hefty fine since it is illegal in most states.)
If you think this applies to you or your client, please get in touch with us now so we can help you before 2018 rolls around.
Here are some links to info on surcharging based on the different card brands: Visa • MasterCard • American Express
As always, be aware of your responsibility as a merchant – but if you recall – we actually recommend you not surcharge…read more here on this topic.
If these 3 things spurred some additional questions, we can help. If you are a business owner and want to make sure you are not at risk or just want to remember to consider these 3 things while processing tax documents in 2018, please e-mail us – tax preparers please remember to ask for our free TransAct Tax Tip tablet.
~ Mary Ann