The IRS has released a new publication, Tax Reform Basics for Individuals and Families, which is available here and on their website IRS.gov/getready. The publication provides an overview of last year's Tax Cuts and Jobs Act, explains the changes that taxpayers can expect when filing their 2018 taxes, and suggests what can be done now to avoid any surprises later.
The standard mileage rates next year go up one cent to 54.5 cents for business miles and to 18 cents for medical or moving purposes, while mileage for charitable service remains unchanged at 14 cents. Remember to keep accurate, detailed mileage logs with your tax records.
Now is the best time to plan for the future, and not just next year. According to an article in this month's Costco Connection, "the best way to start the financial forecasting process is by looking backward at your company's recent financial history." This data from your accountant or bookkeeper is the best guide with which you can estimate your future income and expenses.
Foxbusiness.com reports keeping business and personal accounts separate, clearly tracking income and expenses, and avoiding cash transactions are three ways to help in the event of an audit, the focus of which has turned to small-business partnerships this year.
Are you getting the most, and the most value, out of your CPA or accountant? Ask questions, and get answers that interpret your data into information you can use to grow your business and meet your goals.