Episode 90: Questions To Ask Your CPA & Tracking Expenses for Tax Time with Jake Randall

It’s that time of year again. Something we all have to do, but none of us like it. That’s right, it’s TAX TIME. And that’s why today we are welcoming Jake Randall, the CEO of Taxbot. Taxbot is a mobile app that focuses on automating your expense and mileage tracking and staying IRS compliant. This is something we all need to know since we all deal with taxes. There is an easier way to keep track of your business and new laws you need to know about. Listen in for all the details!

Biggest Takeaways You Don’t Want To Miss:

How has the structure of the tax system changed for small business and solo-preneurs? A lot of the news on corporate tax doesn’t apply to us, we’re mostly just small businesses. The biggest change for us is a new bonus deduction. You get to take your income and multiply by 20% and you get that back. For example, if you make $50,000 in a year you can multiply that by 20% which gives you $10,000 as a deduction. Plus, all rates have mostly gone down, which is great for all small businesses.
Have there been any changes that aren’t so good for small business owners? Overall the new tax laws are great, but the entertainment deduction isn’t the best for us. You can’t deduct certain entertainment events. You can still deduct meals, but if you’re taking your clients out for just entertainment activities they may not qualify.
What are the chances of being audited? They are actually pretty low in any given year. But what you don’t realize that it can compound. You have a chance every year. Mathematically, if you’re in business for about 20 years then you have a 1 in 3 chance of being audited. This increases as you grow, if you make about mid-six figures then you’re more likely going to be a target for auditing.
How can Taxbot help you with keeping track of mileage and receipts? The app can automatically track your trip. It knows when you start driving and you can then easily track your work miles. Plus, it will match up your bank transactions with business expenses. It will prompt you about certain transactions, ask you details about them (for example, with whom were you meeting and what was the topic?) then you can confirm them in your Taxbot. It makes all the headache of keeping track of these minor details so much easier.

Show Highlights:

Don’t miss out on the new 20% bonus deduction for small businesses [2:30]
The difference between expenses and deductions [8:00]
What you need to know about the possibility of being audited [9:20]
How did Taxbot get started? [14:30]
What you can do to learn more about taxes and how to drive your own tax conversation with knowledge [22:00]

Tweetables:

[Tweet ““We recommend that nobody does their own taxes.””]

[Tweet ““The number one reason the IRS wins in an audit is because they don’t have the documentation.””]

[Tweet ““If you’re giving them crap, you’re going to get crap back.””]

Links:

Learn more about the benefits of Taxbot and connect with Jake Randall at Taxbot.com

Also, don’t miss some great educational information and video’s on the Taxbot Mileage and Expense Tracker on Facebook!

Downloadable Offer:

Jake is offering a 14 day trial for Taxbot. You can watch the magic happen for yourself and get the most out of your taxes. Simply go to taxbot.com/bella to get start your trial today. Also, get a risk free 50% off of Taxbot’s educational tax course when you sign up. Plus you can bundle them for even more