Framework Bookkeeping

When preparing to file your taxes, it's important to include all relevant business expenses. A category that you don't want to miss is home office deductions! Included in the home office expense category is:

-Rent or mortgage interest
-Utilities (ie. heat, water, internet, phone)
-Home insurance
-Property taxes
-Repairs & maintenance fees

After calculating the allowable portion in regards to your workspace, you may deduct these amounts from your business profit when filing. Do keep in mind, this home office does have to be your principal place of business (at least 50% of the time) or a space that is exclusively used to earn employment income.

Be prepared come tax time and supply your accountant with all potential expenses straight away. For assistance with tax preparation, please reach out to us!

Separating your business finances from personal is an important step to take when starting your own business. Not only is it crucial for proper record keeping, but it can set you up for success in the future. Here are a few reasons why you should open an account before you get your first customer:

-it will make your bookkeeping tasks a lot simpler since you aren’t sorting through a bunch of unrelated transactions

-it’s an accurate way to track company cash flow

-it's important to clearly see how much business related money was spent come tax season

-the separation of finances will give your business credibility. It doesn’t matter that you may not be a corporation with hundreds of daily transactions. If you have taken the time to separate your business from any personal matters, it shows that your company is more than a hobby.

With this in mind, we highly recommend you ensure your finances are well in order from day one. You will thank yourself later!