022- Taxes with Mike

Mike Jesowshek is a modern and innovative CPA, taking a new age approach to accounting, tax savings, and growing your business. He is the founder of JETRO, a digital accounting firm, and host of the Small Business Tax Savings Podcast. Mike has both a bachelors and masters in accounting. Mike has spent the majority of his career as an entrepreneur. He was CFO and co-founded several companies and has experience in all business stages. He set out on a mission to help businesses that have seen and lived the same experiences he did in business. This is how JETRO was built. He has been in the shoes of many small business owners out there and his end goal is to help them in one area that most business owners are not familiar with, accounting and taxes. Mike's Website Mike's Blog Mike's Podcast Sponsor: timetopet.com/confessional Follow us on: Instagram, Twitter, Facebook Subscribe on iTunes, Spotify, Google, Stitcher, & TuneIn Email us at: [email protected] - Whats the difference between a small business focused CPA vs a more general CPA? - being business focused - When should a small business go with a tax professional vs a do-it-yourself approach? - very small, likely not necessary - as you grow! - problem? Missing deductions that you aren't aware of. - not knowing how to bullet proof yourself from an audit - if you're in-experienced - It's January, so what would you recommend to someone who hasn't been thinking of taxes at all? - behind the game - make it a high priority! - gather all of income and expenses - A lot of dog walkers are considered independent contractors, what specifically do they need to be looking for when filing taxes? - if you made over $600?? You'll get a 1099, it's also being sent to the IRS. - By end of January, should arrive. - won't have to schedule C on your personal return - no separate business tax return - How should an independent contractor file vs a small business? - flow through, taxes paid - Differences between business entity designations: sole proprietor, LLC, s-Corp, c-Corp. And the tax implications of each. - not saving money as LLC, that's for lawsuits - sole proprietor and sole LLC taxed as individual - s-corp election makes sense at $40K - How much should we be setting aside for taxes at the end of the year? - 30-40% of NET income is a fairly safe bet - tough for Independent contractors! Cause we don't think about it very often - What are some tax related challenges facing small businesses with a couple of employees? - do you have control over the worker? That's an employee - if person sets hours and rates? That's an IC - Tracking apps and programs are a black box for many, why should someone use them, and what kind of pitfalls can they fall into? - not knowing how to use them!! - You've mentioned bookkeeping a few times, What are some tips you have when it comes to bookkeeping? - open a separate bank account!!!!! - easier to track - keep up to date - keep receipts and annotate them!! - ditch the cash! Hard to track and support your deductions - What's the biggest mistake you see small business owners make with their taxes? - failing to plan! - We hear a lot of questions about deductions, and a common one is "can I deduct both mileage and gas expenses on my taxes?" - actual method - HARD - mileage method - simplified version, an approximation of the actual method - What's one of the most overlooked/under-utilized deductions or tax advantages for small businesses? Support Pet Sitter Confessional