When it comes to taxes, tracking your deductions is crucial to saving money and hopefully getting a nice tax return. There are many tax-deductible items that businesses either don’t know about or tend to have poor record keeping to track them.
It’s important to note that taxes will vary by industry and the state where you’re filing. Some businesses do have deduction limitations based upon their business or state requirements. Tracking and maintaining a decent paper trail can be near impossible without the right equipment. That is where a point of sale systems (POS) comes into play.
First, you should know that your POS software could qualify as an expense for several deduction areas including accounting, computer software, and marketing. To add to that value, your POS system calculates crucial tax data to speed up your filing process. This eliminates manual tasks such as filing receipts and calculating your adjusted gross income. This also eliminates errors so you are getting the most accurate information. The reporting for POS systems is so robust; some business owners don’t see the need to hire an accountant.
When it comes to business supplies and materials, POS systems provide the most comprehensive data to calculate the accurate cost of goods sold. If you find that there are some materials that you would have tracked manually, some POS systems have barcode scanners or ways to enter in this data to reduce time.
If you don’t have a POS, your merchant processing statements contain much of the information you need for tax season. While your statement won’t track inventory and materials, you’ll get a comprehensive overview of gross adjusted income and other fees you can write off as business expenses. This makes it imperative that you store statements safely and know how to review them.
Your payment technology can save you a lot of time and headache during tax season. Be sure to work with the right processor that can provide you the tools you need to get through tax season and beyond. Fill out the lead form below to request more information.