All About Accounting

If you filed an extension, you have until October 16, 2023, to file your 2022 federal income tax return. This applies to extentions for personal 1040 tax returns and Schedule C businesses.

An extension to file is not an extension to pay taxes. If you owe taxes, you should pay them before the due date to avoid potential penalties and interest on the amount owed.

Came across this very sweet review from last week. We love helping our TPT Community. No need for tears!! 🥰

Did you know that you can rent your house to your business for 14 days or less, and NOT have to pay taxes on that income (and still keep the business deduction)?

You'll need:

1. A rental contract
2. Market analysis for the price you chose
3. Why the business rented it out
4. The rent payment actually be moved between your business and personal accounts

Learn more about this strategy, and MORE, in our Tax Efficiency Analysis Meeting! Interested in this service? Use the link in our bio to book a discovery call to learn more & get pricing information!

Do you break apart these expenses in your bookkeeping?

Did you know that you SHOULD be breaking these expenses down like this?

Do you notice a drop in sales during the summer? What do you to prepare for and combat this? Do you take advantage of the downtime to create new resources? Do you shift marketing efforts?

Drop a comment with ideas on how to manage the selling cycles throughout the year.

The BEST business deductions are for things that you would be spending $$ on ANYWAYS! BUT - you have to TRACK them in order to claim them.

Indirect Home Office Expenses are some of the most commonly missed deductions with small businesses simply because they are not tracking them.

How can you be sure that you truly are getting the MOST out of your tax return?

-> TAX PLANNING!!

Even if you aren't making major discoveries or changes to your overall tax strategy, Tax Planning means you can rest easy knowing that you will not be paying a penny more in taxes than absolutely necessary.

The best part? It does NOT have to be tax season in order to plan for taxes! We meet with our clients year-round to help plan for taxes, and usually this means they can adopt tax-saving strategies and habits SOONER (aka - more $ saved in taxes!).

Link in bio for more info on Tax Planning!

Did you know that (if you track them!) you can reimburse yourself for Home Office Expenses throughout the year?

Drop a comment on whether you currently do this or not. If not - is this something you may want to try?

How much $$ did your business make last year? Using raw sales figures to answer this question can be deceiving and can even cause you to make decisions for your business that can impact you negatively.

Be sure to look at your Gross Revenue (before expenses) AND Net Profit (after expenses are taken out) when looking to make decisions regarding your business.

You can deduct the miles you drive for your business! Yes, I know, you probably don't leave the house much because you sell online but many sellers leverage their classroom for content creation, or maybe you pop out to Target to buy supplies or materials so you can stage some photos for your marketing.

But, if you DO drive a little for your business and want to claim those deductions, you MUST keep a mileage log. It is mandatory. It is the law. Otherwise, you risk being denied the deduction if audited.

Here's what to track:

->Date

-->Where you started

--->Where you ended

---->Business purpose

----->Miles driven

Ultimately, the decision is YOURS so if it doesn't feel "worth it" to track this (relative to how much you drive), you don't NEED to, but it may be worth looking into (especially because the mileage deduction is 65.5 cents/mile!).

Curious about how to code personal expenses in your bookkeeping? Keep swiping!

When using $$ earned from your business, it's always best practice to transfer the $$ to a personal account FIRST! Regardless - be sure these "expenses" are coded CORRECTLY in your books - otherwise you may find yourself in some trouble with the IRS come tax time.

Profit is the amount of money your business is left with after expenses. It is ALSO the amount you will pay taxes on, so be sure to include ALL of your expenses.

->Forgetting expenses leads to your profit appearing to be HIGHER than what it actually is, and you will end up PAYING MORE $$ in taxes as a result.

If there are errors in your bookkeeping, there WILL be errors in your Financial Statements (& ultimately your tax return!!)!

Whether from a poor business decision or a tax penalty, little mistakes can cost you BIG TIME!

Swipe to learn more about your potential Sales Tax Liability!

For many people, sales tax is a big concern! The nice thing is that - thanks to the digital nature of Teacher-Seller businesses - it’s hard to hit NEXUS!

Learn more about this topic in our session "Sizing Up Sales Tax" in the Teacher Seller Summit this week. Link in bio for more info on this!

The Teacher Seller's Summit is a one-of-a-kind virtual conference for teacher business owners that brings industry experts together to share their knowledge and experiences on how to take your business to the next level.

The Summit begins TOMORROW!! Link in bio with more details and sign up info if you haven't already!

📢 PSA 📢 If you don't owe more than $1,000, do do NOT need to make estimated tax payments throughout the year!

BUT - if you are obligated to pay and do not - you WILL be subject to possible penalties and late fees.

If you report LESS $$ than the sum of all your 1099s... INSTANT 🚩!!

DON'T make this common mistake on your taxes, and be sure to double check this if you do get a notice!

We are over here taking the time to celebrate a major win today, to the tune of roughly $192,000 in overpaid taxes for a new client in 2022 😬.

What wins, big or small, are you celebrating today?

Don't forget to make your Q2 estimated tax payment! 💸 It's that time of year again when we need to stay on top of our financial responsibilities. Stay ahead of the game and ensure a smooth tax season by submitting your Q2 estimated tax payment on time.

🚩 Does YOUR bookkeeping pass this test? 🚩

Swipe to read about 6 bookkeeping red flags to be aware of and look for in your books!

A flurry of PSA's coming your way! 📢

Gearing up for the TPT Forward Conference? Be sure to grab our FREE resource about what to keep track of when you are traveling for business reasons :) Use this link to grab this resource: https://bit.ly/3W7YzQn

Hiring your kids (under 18) is a fabulous way to save you roughly $4,000 in taxes per kid (if maximized). You can pay them up to $12,950 for legitimate & age-appropriate work that they perform in your business. Think modeling, office cleaning, shredding, etc. But, you must actually pay them (and have proper record of it!).

Definitely speak with a tax pro before implementing as it can get tricky! Want our help implementing this (and potentially other) tax strategies? Schedule a (free) discovery call and lets connect! (Link in bio)

📢 BIG ACCOUNCEMENT!! 📢

After working with the Teacher-Seller Community for some time now we have learned so much! One thing that has been gnawing at us has been our limited ability to scale some of our service offerings to fit Teacher-Sellers at different phases of their business.

We are SO excited to announce that, after putting into place some new tools & processes, that we have been able to revise and add to our service menu to be (hopefully) better suited for this niche and allow us to work with and help more of you in a better capacity!

So, if you have been curious about our services in the past, now is the PERFECT time to see if we have an offering that can help your business.

Schedule a free Discovery Call using the link in our bio to see if our new service model aligns with your business and goals :)

We get a lot of questions about travel. In order for Travel to be a valid business expense, it has to meet this criteria:

1. Have a legitimate business reason for going

2. That reason is established BEFORE you leave.

The key is writing down your plan/itinerary BEFORE you go, and come home with WRITTEN EVIDENCE of your mind blowing epiphanies. For example, a business purpose of networking and discussion that would take place with a group of other sellers is a great reason for travel. Especially because the nature of this space really all over the place/locations. These expenses would be reasonable, ordinary, and necessary, and would therefore not be an issue with the IRS so long as you provide adequate proof.

When you are proactive, you're going to save MORE in taxes! Why? - Because you are able to implement tax-saving strategies as you hit different "triggers" - rather than miss out on those savings by implementing them later on (if ever!).

The conversation changes from: "You should have done this last year", to: "If and when "X" happens, implement this strategy!"

It's so exciting, and definitely leaves you feeling MUCH more confident when it comes time to file your taxes.

Ready to be proactive for YOUR tax situation? Send us a DM to see how a Tax Efficiency Analysis can help you identify opportunities to save $$!

Why pay estimated taxes (other than because you are obligated to)?

Swipe to see the 3 main goals of making estimated payments throughout the year!

Feeling lost when it comes to tax savings? 🤔🔍 You're not alone! MANY people are confused when they hear they should save roughly 30% of their income for taxes.

Here's the deal: taxes can be tricky, and it's easy to underestimate how much you'll owe. 😕💰📉 That's why it's ESSENTIAL to stay informed and plan ahead. Taking proactive steps, like accurate record-keeping, can help you confidently save for your tax bill and avoid any surprises during tax season.

Did you know that you can rent your house to your business for 14 days or less, and NOT have to pay taxes on that income (and still keep the business deduction)?

You'll need:

- A rental contract
- Market analysis for the price you chose
- Why the business rented it out
- The rent payment actually be moved between your business and personal accounts

Learn about this strategy, and MORE, in our Tax Efficiency Analysis Meeting! Interested in this service? Use the link in our bio to book a discovery call to learn more & get pricing information!

Thinking of starting an LLC for tax benefits? Think again! 🚫 While limited liability companies (LLCs) offer liability protection, they don't automatically come with built-in tax advantages.

Remember, taxation for LLCs varies depending on how you choose to be taxed: as a sole proprietorship, partnership, S corporation, or C corporation. It's crucial to consult with a tax professional or accountant to fully understand the tax implications of your business structure.

Questions? Book a call with Rachel and see if we can help! :)