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Starting a small business is a stressful enough endeavor. Make your first-year Tax Preparation easier with these 10 Must-Ask Tax Preparation Questions for Small Business Owners.

10 Must-Ask Tax Preparation Questions for Small Business Owners


1. Is my home workspace/office deductible?  

Very important question. Yes, you can deduct rent/mortgage and utilities spent on your space. There are certain guidelines needed to be filled. Your accountant will navigate you through the process.


2. What pertinent information do I need?

There are specific paperwork and receipts needed to fill out your tax preparation and to ensure that your accountant maximizes the deductions you qualify for.


3. What kinds of business expenses are deductible?

Most often, you can deduct what your business spends directly on things such as equipment, services, rent, and other necessities. Expenses generally qualify as a deduction provided it is black and white, unlike a home office.


4. Are my equipment and home office a deduction?

You should be able to write off items such as your phone and the internet. Depending on your usage, your computer, fax machine, and printer may also qualify.


5. Are my employees independent contractors or real employees?

Such an important question as there is much more responsibility with real employees in as much as paying a portion of employee employment taxes and withholding income taxes. Your accountant will be pleased to discuss this in further detail. The rules change year to year so it’s imperative that you sit and discuss with your accountant so you are well informed and prepared.


6. Does Business structure matter while filing your taxes?

No matter how your business is licensed/registered, you need to know how it affects your tax preparation.

7. Are travel expenses deductible?

Most business travel expenses are covered. If planning on taking family or extending your stay, there may be stipulations or exclusions.

8. Is my car deductible?

You should be able to deduct a portion of most expenses if your car is used for business such as insurance, cost. This is certainly true if your vehicle is exclusively for business use.

9. How can I increase my savings?

There are sometimes tax incentives for items like energy-efficient furnaces, windows, etc. Your accountant will help you with this.

10. Any special requirements for my business deductions?

If planning on deducting car, travel and office expenses, certain rules apply. Case in point, your home office needs to be exclusive.


There you have it! 10 Must-Ask tax preparation questions for small business owners. Did you have any of these on your list? Are any of these surprises to you? If so, you may want to consider hiring a bookkeeper – and you’re in luck! Click here to schedule a free consultation with us today!

Want More?

Looking for more bookkeeping information or tips? Check out our post on 5 Common Bookkeeping Pitfalls – and How to Avoid Them