March ushers in spring … and tax season. 17hats makes life easier, by putting everything at your fingertips as you prepare to meet with your accountant or tax pro. Here are a few quick tax-prep tips, as you look ahead to April 15!
- Make sure that all your business accounts (bank accounts, credit cards, etc.) are connected, so you categorize your transactions. Keep the accounts updated regularly, by manually refreshing them with 17hats.
- If your clients pay you via credit card, remember that payment processors take a portion of each payment – typically 2.9% + 30¢ per transaction. Those fees are tax-deductible, and should be entered into 17hats Bookkeeping so that you get the write-off. An easy way to enter them? Total those fees for 2019, and enter them as a New Expense on the Bookkeeping page, dated 12/31/19 and categorized as Merchant Fees. (Going forward, in 2020, you can enter those fees on a monthly basis.)
- Make sure that transfers from payment processors are categorized as “Transfers between accounts,” not income.
Note: For informational purposes only. Always consult with your tax professional with business-related tax questions.