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4 Reasons Why Bookkeeping is Important for Small Businesses

April 14, 2023

Bookkeeping is essential to the survival of any small business. If you don’t have a clear understanding of what bookkeeping means or want to learn more about it, you’ve come to the right place. In today’s blog post, we will explain why bookkeeping is important for small businesses and how it can help you stay on top of your finances.

What Is Bookkeeping, Exactly?

Before we delve into the benefits of bookkeeping for small businesses, let’s agree on a basic definition of bookkeeping.

Bookkeeping is the process of recording and organizing financial transactions of a business or individual. This process involves recording and categorizing financial transactions (such as sales, expenses, and receipts ) in chronological order.

And although this may seem like a simple task, bookkeeping can be a total game changer for your small business. Let’s see why.

Why Is Bookkeeping Important for Small Businesses?

From shaping the decision-making process to helping stave off overspending, efficient bookkeeping is an essential tool for small enterprises.

1. Manage Your Finances

Small business owners often have to optimize how they use the resources they have available, which makes it even more critical to keep track of every penny that is spent.

Bookkeeping can help identify areas in which you may be overspending or underspending, giving you the opportunity to adjust and course correct. Without detailed financial records, you risk losing control of your money and may find yourself in debt. Bookkeeping can help you avoid this scenario by providing a clear understanding of your finances.

2. Facilitates Decision-Making

While this is true for any organization, small businesses need to make decisions quickly and efficiently.

With accurate books, small business owners can make informed business decisions based on solid data. They can identify the areas in which they should invest and see where it would be prudent to slow down. In the long run, this can make a massive impact on the business’s success.

3. Better Tax Planning

It’s not uncommon to see small businesses struggle with tax planning. And although the factors causing this problem may vary from organization to organization, messy or flawed records are often to blame. Having accurate records simplifies tax planning while helping owners of small businesses save on taxes and avoid penalties.

4. Helps Avoid Fraud and Theft

Fraud and theft are two risks faced by small business owners. Without proper bookkeeping, it can be difficult to identify fraudulent activities. For instance, keeping an eye on payroll records can help you identify any discrepancies that may be costing you money.

Bookkeeping gives you the ability to track every transaction in your business, hence providing an additional layer of security.

Wrapping It Up

In short, proper bookkeeping is the foundation of a successful small business.

Efficient bookkeeping helps manage finances, facilitates decision-making, improves your tax planning, and helps avoid fraud and theft, and helps secure funding.

As a small business owner, bookkeeping should be a top priority. If you need help keeping accurate records, contact our experts at JT Taxes. We stand ready to help you and your organization make the most of high-quality bookkeeping.

JT Tax Services Is Here To Answer Your Tax and Bookkeeping Questions

When it comes to taxes, knowledge is power. That’s why at At JT Tax Services, we give you the peace of mind that comes with knowing that you are working with experienced professionals with in-depth knowledge of all applicable tax laws and regulations.

We are located in Oxnard, California, contact us today by email (info@jttaxservices.com), telephone (805-984-8890), or through our social media accounts on Facebook, Twitter, and LinkedIn to schedule a consultation or to learn more about our services.

Are Tips Taxable? Everything You Need to Know

By: UNIKO Media Group

April 8, 2023

Tipping culture is prevalent across different industries and services, from restaurants and cafes to hotels and salons. However, when it comes to taxes, things can get a bit confusing. Are tips taxable? Do you need to declare them on your tax return? In this blog post, we’ll dive into the world of taxes and tips to answer all your questions.

Are Tips Taxable?

The Internal Revenue Service (IRS) considers tips as income, just like your regular salary or wages.

If you receive tips as part of your job, you are required to:

Keep a daily tip record.
Report your tips to your employer unless the total is less than $20 per month per employer
Report all tips on an individual income tax return.

There’s no official form to report your tips to your employer. However, the document must include the following information:

Employee signature,
Employee’s name, address, and social security number,
Employer’s name and address (establishment name if different),
Month or period the report covers, and
Total of tips received during the month or period.

Taxes and Tips: Some Practical Advice

You are required to report your tips to your employer by the 10th of the month after the month the tips are received. If the 10th falls on a Saturday, Sunday, or legal holiday, an employee may give the report to the employer by the next day that is not a Saturday, Sunday, or legal holiday.

Now, you may be wondering, how do I keep track of my tips? It’s a good idea to keep a daily log of your tips, including the date, the amount, and the source (e.g., cash or credit card). You can use a notebook, a spreadsheet, or a tip-tracking app to make it easier. By keeping an accurate record of your tips, you can ensure that you’re reporting the correct amount on your tax return.

Remember that you also need to keep a record of the date and value of any noncash tips you receive. This includes things like tickets, passes, or other items of value. Although you are not required to report these noncash tips to your employer, you must report them on your tax return.

For more tax tips check out our previous blogs, “Filing Status: What Is It and Why It Matters” and “How To Organize Your Tax Records.”

JT Tax Services: Taxes Made Easy

2023 Tax Deadline: What You Need To Know

By: UNIKO Media Group

April 3, 2023

For most of the United States, the deadline to submit and pay federal tax returns is April 18, 2023. However, things are different if you live in California. Keep reading to learn more, and get some tips for a stress-free tax season.

When Is the 2023 Tax Deadline?

This year’s tax deadline for most of the U.S. is Tuesday, April 18, 2023. However, the Internal Revenue Service (IRS) has offered an extended deadline of Monday, October 16, 2023 to tax payers in disaster areas located in most of California and parts of Alabama and Georgia.

According to the IRS, the October 16 extension applies to

Individual income tax returns, originally due on April 18
Various business returns, normally due on March 15 and April 18
Returns of tax-exempt organizations, normally due on May 15

Additionally, this means that eligible taxpayers will also have until October 16, 2023, to make 2022 contributions to their IRAs and health savings accounts.

Where Does It Apply?

So far this year, the IRS has issued three Tax relief bulletins concerning California. Each bulletin contains a list of counties that will receive tax relief in the form of an extension. If you reside or have a business in any of these localities, you can take advantage of the extended deadline.

The lists below are accurate as of publication, although new localities may be added. To check the most recent bulletins and updates, visit the Tax Relief in Disaster Situations section on the IRS website.

Victims of severe winter storms, flooding, and mudslides in California beginning January 8, 2023, (issued January 10, 2023):

Alameda, Colusa, Contra Costa, El Dorado, Fresno, Glenn, Humboldt, Kings, Lake, Los Angeles, Madera, Marin, Mariposa, Mendocino, Merced, Mono, Monterey, Napa, Orange, Placer, Riverside, Sacramento, San Benito, San Bernardino, San Diego, San Francisco, San Joaquin, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara, Santa Cruz, Solano, Sonoma, Stanislaus, Sutter, Tehama, Tulare, Ventura, Yolo, and Yuba counties.

Victims of severe winter storms, flooding, landslides, and mudslides beginning December 27, 2022 (issued January 24, 2023):

Alameda, Alpine, Amador, Butte, Calaveras, Colusa, Contra Costa, Del Norte, El Dorado, Fresno, Glenn, Humboldt, Inyo, Los Angeles, Madera, Marin, Mariposa, Mendocino, Merced, Monterey, Napa, Nevada, Placer, Sacramento, San Benito, San Joaquin, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara, Santa Cruz, San Diego, San Francisco, Siskiyou, Solano, Sonoma, Stanislaus, Sutter, Tehama, Trinity, Tulare, Tuolumne, Ventura, and Yolo counties.

Victims of severe winter storms, flooding, landslides and mudslides in California beginning March 9, 2023. (issued March 17, 2023)

Alpine, Amador, Butte, Calaveras, Del Norte, El Dorado, Fresno, Glenn, Humboldt, Imperial, Inyo, Kern, Kings, Lake, Los Angeles, Madera, Mariposa, Mendocino, Merced, Mono, Monterey, Napa, Nevada, Orange, Placer, Plumas, Sacramento, San Benito, San Bernardino, San Francisco, San Joaquin, San Mateo, San Luis Obispo, Santa Barbara, Santa Clara, Santa Cruz, Sierra, Sonoma, Stanislaus, Trinity, Tulare, Tuolumne and Yuba counties

For more tax tips, check out our previous blogs, “2023 Tax Refund schedule: When Will I Get My Refund?” and “Will Tax Refunds Be Bigger in 2023?”

JT Tax Services Is Here To Answer Your Tax Questions

Tax Filing Tips for Small Businesses

By: UNIKO Media Group

March 27, 2023

For many small business owners, tax season may seem like a daunting task. The rules and regulations surrounding taxes can be overwhelming and intimidating. But with the right information and preparation, filing taxes doesn’t have to be a headache. Keep reading to learn some helpful tips for small business owners so you can file your taxes with confidence!

Start Early

When it comes to your taxes, it’s never too early to start preparing. By getting a head start on your taxes, you’ll have plenty of time to make sure you’re taking advantage of all available deductions and credits that could save you money. Plus, if there’s an issue or mistake on your return, you’ll have plenty of time to resolve it before the deadline.

Take Advantage of All Available Deductions

One of the most important things small business owners should do is take full advantage of all available deductions and credits. This means researching what types of expenses are deductible as well as which tax credits can help reduce your overall tax burden

There are also numerous tax credits available for businesses. Get in touch with a tax professional to discover how to best take advantage of all these opportunities.

Keep Accurate Records

Wait! Before you can take full advantage of the deductions available to you, it’s essential to keep accurate records throughout the year — not just during tax season!

This will ensure that you don’t miss out on any potential deductions when filing your return. Make sure you accurately track each expense throughout the year so that you don’t end up paying more than it’s necessary when filing your return.

Work With a Tax Pro

If you feel that taxes are just too tricky for you, consider hiring a professional accountant or tax preparer who can help make sense of all the paperwork and regulations associated with filing a business return correctly and on time each year – especially if you’re dealing with state-level taxation issues in addition to Federal ones!

A tax pro not only can help ensure that everything is filed correctly but they’ll also be able to provide helpful advice about how best to structure your finances going forward so that next year’s return isn’t nearly as painful!

JT Tax Services Is Here To Answer Your Tax Questions

Smiling business woman illustrates blog "Tips To File Your Taxes On Time"

Some Tips To File Your Taxes On Time

By: UNIKO Media Group

February 24, 2023

With so many different forms to fill out and deadlines to keep track of, it’s easy to put tax filing off until the last minute. However, doing so can lead to penalties and fees. But don’t worry! With a little preparation and organization, filing your taxes on time is really easy.

Gather All Your Documents

Before starting to fill out any tax forms, make sure you have all the necessary documents. This includes your W-2 form from your employer, any 1099 forms, and any other income or expense documentation that you might need.

By having all your documents in one place you can avoid any last-minute scrambling to find them.

Don’t Rush To File

Filing your taxes can be intimidating, but rushing through the process can lead to errors and mistakes. Take your time, read all the instructions carefully, and double-check your work.

Trying to do things too fast can lead to delays in processing your return and potential penalties, so it’s important to make sure everything is correct.

Get Help From a Tax Pro

If you have a complex tax situation, it may be worth considering seeking the help of a professional tax preparer.

For example, at JT Tax Services we can ensure that your taxes are done accurately and can even help you identify areas where you might be able to save money by taking advantage of the tax credits and deductions available to you.

Choosing us means enjoying the peace of mind that comes with knowing that your taxes are done correctly!

Wrapping It Up

Filing your taxes on time can seem daunting, but it doesn’t have to be. By gathering all necessary documents, taking your time, and seeking professional help if needed, you can file your taxes with ease.

With a little bit of effort and organization, you’ll be able to file your taxes on time and free of stress.

Have Questions? at JT Tax Services, We Have Answers

At JT Tax Services, we give you the peace of mind that comes with knowing that you are limiting your liability while staying compliant with all regulations.

2023 Tax Refund schedule: When Will I Get My Refund?

By: UNIKO Media Group

February 10, 2023

With tax season now underway, the question on the minds of millions of taxpayers is “When will I get my refund?” In today’s post, we provide an answer, including a tax refund schedule, and take a look at other useful tax tips. .

When Will I Get My Refund?

If as soon as you file your tax return you start wondering when you are going to get your refund, you are not alone!

Luckily, there’s a way to get a ballpark answer to the question “When Will I Get My Refund?”

In one of its most recent bulletins, the IRS informed that “most taxpayers will receive their refund within 21 days of when they file electronically, if they choose direct deposit and there are no issues with their tax return.”

With that in mind, here’s a table to help you visualize a 21-day period starting from different filing dates. Again, remember that this is assuming that you filed electronically and there are no issues with your tax return.

Date of filing electronically	21 days later…
January 23, 2023	February 13, 2023
January 30, 2023	February 20, 2023
February 10, 2023	March 3, 2023
February 17, 2023	March 10, 2023
February 27, 2023	March 20, 2023
March 6, 2023	March 27, 2023
March 14, 2023	April 4, 2023
March 21, 2023	April 11, 2023
March 28, 2023	April 18, 2023
April 5, 2023	April 26, 2023
April 12, 2023	May 3, 2023
April 18, 2023	May 9, 2023

Remember that these dates are NOT official and are presented just for informational purposes.

To get personalized information about when you will receive your tax refund, use the Where’s My Refund tool on the IRS website.

For other useful tax season tips, check out our previous blogs, “Will Tax Refunds Be Bigger in 2023?” and “California Storms: IRS Extends Tax Deadline for Victims.”

Have Questions? at JT Tax Services, We Have Answers

At JT Tax Services, we give you the peace of mind that comes with knowing that you are limiting your liability while staying compliant with all regulations.

Will Tax Refunds Be Bigger in 2023?

By: UNIKO Media Group

January 25, 2023

Tax season 2023 has officially started, and with it come all types of questions. For example, will tax refunds be bigger in 2023? In today’s blog post, we answer this question and provide some useful tips for the filing season.

Will Tax Refunds Be Bigger in 2023?

Unfortunately, the answer is no: it is unlikely that your tax return will be bigger in 2023 than in the last two years. One of the main reasons is that there were no Economic Impact Payments for 2022

Additionally, some tax credits (such as the child tax credit) that were extended to offer economic relief during the pandemic have reverted to their 2019 levels.

To sum it up, many of the tax incentives that were deployed over the last two years to help Americans deal with the impact of COVID-19 are being rolled back. For many taxpayers, this return to normal will translate into a smaller tax refund in 2023.

Regardless of the size of your return, there are some things you can do speed up the process:

File as early as possible (while making sure that all the information in your return is accurate)
File electronically
Choose direct deposit for your tax refund

What You Need To Keep in Mind

Federal tax season 2023 began on January 23. The deadline to file your federal taxes this year is April 18, 2023

However the IRS has given victims of the storms that hit California an extended May 15 deadline to file federal individual and business tax returns and make the related tax payments.

If you need help filing your tax return, contact JT Tax Services. Our team will answer all your questions and ensure that you get your maximum tax refund.

For more tips on how to navigate the 2023 tax season, check out our previous blog “Reminder: Tax Season Begins January 2023.”

Have Questions? at JT Tax Services, We Have Answers

At JT Tax Services, we give you the peace of mind that comes with knowing that you are limiting your liability while staying compliant with all regulations.

Reminder: Tax Season Begins January 23

By: UNIKO Media Group

January 21, 2023

In just a few days, the IRS will start accepting and processing tax returns, marking the beginning of the 2023 tax filing season. In today’s post, we tell you everything you need to know, including information about the extended deadline for victims of the California storms.

Tax Season Begins January 23

The Internal Revenue Service (IRS) has informed that it will start accepting tax returns on January 23, 2023.

Taxpayers will have until April 18, 2023, to file their federal taxes and make the related payments.

The IRS expects to process more than 168 million individual tax returns, with the majority of them arriving before the April 18 deadline.

Here are some tips to ensure a smooth tax-filing season:

Gather all the information you need before filing your tax return (this includes Social Security Number or ITIN, supporting documents, information of dependents, among others)

Review your tax situation to make sure you don’t overlook tax credits you may be eligible for

If you have questions, contact the IRS, or get in touch with the tax pros at JT Tax Services. We’ll be happy to answer all your tax questions!

IRS Extended the Federal Tax Deadline for California Storm Victims

Remember that while the official deadline to file and pay federal taxes is April 18, 2023, the IRS announced an extended deadline for those affected by the storms that have been pummeling California.

If you live or have business in any of the localities listed below, you have until May 15, 2023 to file federal individual and business tax returns and make the related tax payments.

Colusa	San Diego
El Dorado	San Joaquin
Glenn	San Luis Obispo
Humboldt	San Mateo
Los Angeles	Santa Barbara
Marin	Santa Clara
Mariposa	Santa Cruz
Mendocino	Solano
Merced	Sonoma
Monterey	Stanislaus
Napa	Sutter
Orange	Tehama
Placer	Ventura
Riverside	Yolo
Sacramento	Yuba
San Bernardino

Other localities added later to the disaster area will also qualify for the same tax relief. You can check the updated list on the section Tax Relief in Disaster Situations on the IRS website.

Have Questions? at JT Tax Services, We Have Answers

At JT Tax Services, we give you the peace of mind that comes with knowing that you are limiting your liability while staying compliant with all regulations.

California Storms: IRS Extends Tax Deadline for Victims

By: UNIKO Media Group

January 10, 2023

In view of the relentless storms affecting California, the IRS has announced that it will offer tax relief to the victims by extending to May 15, 2023, the deadline to file federal individual and business tax returns and make the related tax payments.

IRS Extends Tax Deadline for California Storm Victims

The massive storms sweeping through California have caused the IRS to offer tax relief to the victims, who will now have until May 15, 2023, to file federal individual and business tax returns and make the related tax payments.

The original deadline for federal individual tax returns and payments was April 18, 2023.

The extended deadline will apply to all the individuals and households that live or have a business in any area designated by the Federal Emergency Management Agency (FEMA). The current list of counties that can take advantage of this tax relief include the following counties:

Colusa	San Diego
El Dorado	San Joaquin
Glenn	San Luis Obispo
Humboldt	San Mateo
Los Angeles	Santa Barbara
Marin	Santa Clara
Mariposa	Santa Cruz
Mendocino	Solano
Merced	Sonoma
Monterey	Stanislaus
Napa	Sutter
Orange	Tehama
Placer	Ventura
Riverside	Yolo
Sacramento	Yuba
San Bernardino

Other localities added later to the disaster area will also qualify for the same tax relief. You can check the updated list on the section Tax Relief in Disaster Situations on the IRS website.

It’s worth noting that farmers who choose to forgo making estimated tax payments and normally file their returns by March 1 will now have until May 15, 2023, to file their 2022 return and pay any tax due.

Additionally, The May 15, 2023, deadline also applies to the quarterly estimated tax payments, normally due on January 17, 2023, and April 18, 2023. This means that individual taxpayers can skip making the fourth quarter estimated tax payment, normally due January 17, 2023, and instead include it with the 2022 return they file, on or before May 15.

Have Questions? at JT Tax Services, We Have Answers

At JT Tax Services, we give you the peace of mind that comes with knowing that you are limiting your liability while staying compliant with all regulations.

Charitable Donations and Taxes: What You Need To Know

By: UNIKO Media Group

December 21, 2022

Christmas is a time of giving, so chances are good that you are considering making a donation to lighten up someone’s Christmas. If that’s the case, read on to discover some useful tax tips to keep in mind this holiday season.

Charitable Donations and Taxes: What You Need To Know

First things first: remember that in order to claim a deduction on your 2022 tax return, you must donate to a tax-exempt organization by December 31 2022.

Another important point to consider is that, in general, you can only deduct charitable contributions if you itemize deductions on schedule A (although an exception was made for 2021 returns).

While most charitable tax donations qualify for the deduction, there are some exceptions. For example, donations that are not tax deductible include those:

Made to a supporting organization
Intended to help establish or maintain a donor advised fund
Carried forward from prior years
Made to most private foundations
Made to charitable remainder trusts

A charity must have something known as 501(c)3 status if you want to deduct your donation on your federal tax return. You can check an organization’s 501(c)3 status by using the IRS’ Tax Exempt Organization Search tool.

For most people, making a donation means donating funds. However, If you donate property other than cash, you may generally deduct the fair market value of the property.

It’s also worth noting that the term “cash” doesn’t refer to physical money only. For tax purposes, cash contributions include those made by check, credit card or debit card as well as unreimbursed out-of-pocket expenses in connection with volunteer services to a qualifying charitable organization.

If you need help making sense of charitable donations and how to claim them on your tax return, feel free to contact our experts. We’ll be happy to offer assistance and answer all your questions.

Have Tax Questions? At JT Tax Services, We’ve Got Answers

At JT Tax Services, we give you the peace of mind that comes with knowing that you are limiting your liability while staying compliant with all regulations.