Your Tax Questions, Answered: Top FAQs for Small Business Owners

Running a small business means juggling a lot of responsibilities, and tax season often adds even more to your plate. Many business owners want to stay on top of their finances but feel unsure about what to track, when to file, or how to reduce their tax bill. At C Squared Accounting, we support small businesses across the country with clear guidance and reliable tax services.

Here are answers to some of the most common tax questions we hear.

1. What counts as a business expense?

Business expenses must be both ordinary and necessary to be deductible. Common write-offs include:

  • Office supplies and equipment
  • Software and online tools
  • Business-related travel
  • Marketing and advertising costs
  • Client meals (typically 50% deductible)
  • Professional services like bookkeeping or legal advice
  • Home office costs, if you qualify

To stay audit-ready, it is important to track what you spent, when you spent it, and why it was a business need. Save every receipt and document your purchases consistently.

2. Do I need to pay quarterly estimated taxes?

If you are self-employed or do not have taxes withheld from your income, you may need to make estimated payments four times a year. These payments cover your income tax and self-employment tax as you earn throughout the year.

Staying on top of these deadlines helps you avoid underpayment penalties and keeps your cash flow predictable.

3. What documents should I gather for tax filing?

A successful tax season starts with organized records. You will want to collect:

  • Profit and Loss statement
  • Balance sheet (if applicable)
  • 1099s or W-2s issued or received
  • Receipts for deductible expenses
  • Payroll records
  • Mileage logs
  • Records of any estimated tax payments you already made

Having all your documentation ready helps your accountant file accurately and uncover any savings opportunities.

4. How can I lower my tax bill?

There are several ways to reduce your tax liability, depending on your business structure and income level. Smart strategies may include:

  • Switching from an LLC to an S-Corp
  • Contributing to a retirement plan
  • Accelerating expenses before year-end
  • Claiming all eligible deductions and credits
  • Using depreciation on equipment or vehicles
  • Staying organized with your books throughout the year

Our team offers year-round tax planning services to help you make strategic decisions and avoid surprises.

5. What if I’m behind on my bookkeeping or taxes?

It happens. Many business owners fall behind on their books or delay tax filings because they feel overwhelmed. That is exactly what we help with.

We offer catch-up bookkeeping, tax filing support, and cleanup services so you can move forward with confidence. No lectures, no judgment, just real help from a team who understands what it is like to run a busy business.

Keep Things Simple and Stay Proactive

Getting organized early and checking in on your financials throughout the year will make a big difference. Staying consistent with your bookkeeping, reviewing reports each month, and working with a trusted accounting team can reduce stress and give you more control over your finances.

Let us help you feel confident and prepared this tax season.

 

(631) 452-1423
csquaredacct.com
Your trusted team for Tax Prep, Bookkeeping, and Fractional CFO Services