Augmenting your income with a side business is a great way to make progress toward your financial goals. It’s also a great way to explore a future business venture based on passion or talent. But one thing is common, no matter the goal behind your side hustle. When it comes to the IRS, income is income, plain and simple.
One way to protect yourself from possible pitfalls is to interview and partner with an accounting professional to support the financial structure of your work. A professional is dedicated to knowing the ins and outs of accounting, tax laws and items of significance to your business. We not only help ensure your taxes are filed properly, we can also identify potential deductions that you may be eligible for!
This recent Forbes article does a nice job highlighting some key points to keep in mind. One that stands out to us is documentation. When you’re working for yourself, it’s important to keep receipts and records (think work-related expenses, mileage and the like). You will have to have these items come tax time if you intend to claim a deduction. And, depending on the format of your business, you might even be eligible to take deductions on a home office. With this deduction, you will not only need receipts, but they will need to be pro-rated as well. We can help with all of this!
OLATHE TAX ACCOUNTANT
If you have been doing work on the side, or if it’s something you’re kicking around, give us a call at (913) 888-9100. We’re available to work alongside you to make your business a success!
Richard Adams is a graduate of Benedictine College in Atchison, Kansas, with dual majors in Accounting and Business Administration. He is also a graduate of Wentworth Military Academy in Lexington, Missouri.