Why it matters for small businesses to pay taxes.

Positivity and taxes are two words you do not expect to find in the same sentence.

Well, taxes can be positive for your small business.

Your small business is more than an avenue for you to grow professionally and increase your net worth. It also enables economic growth and provided resources that can be used for public investment. Your business contributes towards health care, infrastructure, education, and services that keep society fully functional. Look at a few more reasons why taxes matter for your small business.

1. Enjoy Deductions

The IRS does not always take your profits through tax, they also offer some relief through tax deductions. Some deductions that you should explore include business use of your vehicle, health insurance, business trips, and retirement plans. A deduction allows you to reduce the overall amount that you would be subject to through income tax.

2. Filling on behalf of others

As a small business, there are some taxes that you will collect and have to submit on behalf of others – typically employees and customers. Failure to remit these collected taxes will lead to penalties and fees that could affect your bottom line. These taxes include sales tax, withholding tax and unemployment tax.

3. Expensing Allowances

The IRS allows for the cost of depreciable assets to be treated as a current expense instead of a capital expense. This way you can save on taxes each year until the asset is phased out or replaced. Without paying taxes, this benefit would not be available. The alternative would be amplified costs for machinery or equipment that are essential for running your business.

Even with all these advantages, you may view taxes as being burdensome, and time-consuming. Furthermore, without expert support, it can be difficult to understand comprehensive tax laws and ensure that no tax-related issues are experienced.

There are two essential things you need to know about taxes as a small business. The first is to understand all the benefits your business can experience from taxation. Second, you must know all the taxes that are relevant to your business to ensure your compliance. Reach out to an expert CPA from RCN Accounting & Business Advisors and get help ensuring that you always file the correct taxes by the required deadlines. Click here to book a discovery call today.

Miriam Blednick

I am a small business owner and found this firm a few years ago and could not be happier. I was worried it might be hard to switch but after my initial meeting with the owner, Nneka, and her staff it was an easy decision. They are all amazing people. We have an unusual business model but it took them a very short time to understand because they asked questions and listened. Over the past three years, Nneka, has given me excellent advice that helped me make solid decisions for the business and for my personal retirement. If you need a CPA, they see all types of clients, I personally and professionally highly recommend them.

Seyi Oshikanlu

Nneka is knowledgeable, she listens and understands your goals and then makes a plan to achieve these with you. Many CPAs simply use software and are not ready to educate you on how to utilize the benefits you have. She is not a cookie cutter professional but one who cares, listens cos she has ears and then helps you achieve your goals! Thanks so much!

Maurer Co Retaining Walls

They have really helped us to keep on the right track!! We love our accountant!! They give us monthly financial statements and we have a standing monthly online meeting to go over our statements, ask any questions and plan for the future. Best accountant ever!!!

Cosmic Aureas

CPA Nneka Nwobi provided very valuable tax related recommendation which helped save thousands of dollars that would have to otherwise be paid to the IRS. Nneka is very professional and prompt in email communication. I am truly thankful to her and appreciate her for her knowledge and the valuable recommendations that she made on how to best approach my situation.

Romaine Washington

I received very valuable tax information from Nneka Nwobi. Making her services and tax questions available with no obligation is a lost art from any business owners today. I really appreciate her professionalism, knowledge and recommendations on how to best approach my text situation.

Anthony Okoye

Excellent service

Ron Campbell

Nneka Nwobi's response to my request for help in making some adjusting entries and correcting some accounting matters was EXCELLENT! I especially appreciated her showing me how to do it using Zoom screen sharing on my Quickbooks account as well as explaining the transactions. It is a pleasure working with her.

Redmond Bandy

This place is so professional, timely, and they pay attention to detail. Will be working with them forever. 10/10

Yasuo Matsuzawa

Great team at RCN and the team is efficient

Scott Korey

Everything you would look for in a CPA: professional, timely, and personal. I've been trusting them for years with tax preparation and love the confidence that engenders. Their service is a great value, as well.

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