TAX TIP FOR SMALL BUSINESS
Here at Grace & Associates CPA, we take pride in giving our customer all the tools necessary to succeed. Keeping you well equipped with the knowledge can be a leading instrument in your businesses sustainability. Contact us for more information.
— Avoid Paying Business Expenses in Cash —
There are a number of drawbacks when you use cash to pay your suppliers and employee salary. Among other things, cash payments are more difficult to trace so it will be hard to keep track of company spending, and you run the risk of overstating your income. Additionally, without any records of purchases, monitoring write offs will also be a challenge. Make it a habit to use a debit or credit card or check payments when settling company expenses. This method makes it easier to keep track of the amount spent, where it was spent, and when it was spent.