Accounting Tips for Entrepreneurs Part 3

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Continuing from our last article, today we will discuss another 4 Business Accounting, Tax and Legal tips for any small business which may be used when getting your business finances in a gear during the year:

The home office dimension.

As an Entrepreneur, it may be difficult at times to get your own space, as discussed in last week's post. It may be wise instead to find a space at your home and dedicate it to your office space. Thereby, being able to deduct a portion of your housing costs into your business.

For example: Your workspace is 1.3 feet by .9 feet = 1.17 sqft; your house's living space is 2,500 sq ft. Your workspace is .05% of your entire floor space. The market value for properties within your area is $5 per sqft. Hence, your rental value will be 1.17 sqft *$5 = $5.85. If upgrades are made such as painting, lighting, and office furniture things too can be deducted as well.

Home Utilities.

Since your office is at home, therefore it's only fitting that a portion of your utility bills such as Electricity, Internet and water rates be incorporated as part of your business expenses. Your workspace is 1.3 feet by .9 feet = 1.17 sq ft; your house's living space is 2,500 sq ft. Your workspace is 0.05% of your entire floor space. Hence, you will do as follows:

T&TEC bill for February to March $530.50. Your business' usage will be (0.05% * $530.50) = $0.25. The same will be done for each expense above.

Apply 25% of the listed expenses as the operating expenses of the business. For example: T&TEC bill for February to March $530.50. Your business' usage is calculated as ($530.50*.25) = $132.63

Office Supplies.

As home-based entrepreneurs, we forget the importance of taking account of the money we spend on paper, ink toner, paper clips that you purchase for your business use. Even the iPad or tablet, you will use to do your videos for youtube and presentation. These are all valuable expenses for your business. For instance, if you use a tablet or laptop for both personal and business. It this case, you will have to portion that expenses for your business such as 60% or 80%.

Foreign Travel Expenses.

Let's talk about those foreign trips you may take to go to a seminar to help better your business or improve your knowledge of your business such as master degrees. You will need:

  • Transportation costs such as the plane ticket, bus fare or taxi fare, car rental or airport parking.
  • Accommodation at the hotel or motel you stayed at.
  • Meals for the business days. You can deduct 50% of the cost and apply it towards the business.

For a CONSULTATION, please call Destiny Planners at 868-469-6317 or set an appointment at https://bit.ly/DPAppointment

Next week, we will discuss another four tips.

Accounting Tips for Entrepreneurs Part 4
Accounting Tips for Entrepreneurs Part 2

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Friday, 18 October 2019
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