Small Business Owners & Income Tax As a small business owner keeping up with taxes probably isn’t your favorite part of doing business. Between deadlines and calculating estimated earnings, accurate record keeping is a necessity. But keeping track of the total money coming in minus the money going out plus assigning each transaction a descriptive category takes a lot of time out of your day. Time that could be better spent obtaining new clients and making profits. As if that wasn’t bad enough, the way you calculate and organize expenditures can affect your net tax picture in different ways. It may be tempting to track money in/ money out but resist the temptation; you are running the risk of paying more than necessary or putting yourself at risk because you didn’t classify transactions correctly. In fact, in a worse case scenario, both of these can happen to you. Small business owners are particularly at risk for scrutiny by the IRS and state income bureaus so it is wise to keep detailed, accurate records. This is an area of the business where you definitely cannot afford to cut corners. When in doubt, seek financial/tax advice or hire an accountant or call PCG to learn how easy and cost effective it is to have all of this handled for you! Not only that, but it is a valid tax write-off that allows you to get back to the business of building profits for your company.