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Get an accountant as soon as you have $10k in revenue. Open a new CC account; put all business expenses on the CC. Keep a detailed travel log so that you'll b
by patio11 11y ago
Get an accountant as soon as you have $10k in revenue. Open a new CC account; put all business expenses on the CC. Keep a detailed travel log so that you'll be sustained on the possible eventual audit of your travel expenses.
The single best thing a consultancy can do to decrease tax burden is keep really good books on expenses. Don't drop $14k worth of CC receipts on the floor prior to entry; that costs you $5k+.
Also as a software engineer you get far, far, far more economic advantage from working on your business than from tax optimization. Get people to do that for you; spend as little time and brain sweat on it as possible.
I use bench.co for bookkeeping. Best money I every spent.
Talk to your accountant about retirement funding options; they're the modestly-more-brainsweat required option for decreasing present-year tax burden.
- akulbe 11y agoHi, Pat. Thank you for responding. I just had my first 5-figure month. Early on, I'd set up a separate bank account its own card attached. I've been using Freshbooks, so far. I'll check out bench.co
- codegeek 11y agoIf you are going to be solo, check out self employed 401k a.k.a solo 401k that allows contributing upto 53,000 per year in retirement which will give you a Huge tax benefit.
- atmosx 11y agoIs it true that when using Freshbooks and PayPal business (e-check) option cuts the PP cost down to 0.50 USD per transaction?
- akulbe 11y agoI haven't used the PP biz option, so I don't have an answer for that one.