SpaghettiOs, Weddings and Dog Clothes: Xero Accountant Survey Reveals Unique Small Business Tax Write-Offs

SpaghettiOs, Weddings and Dog Clothes: Xero Accountant Survey Reveals Unique 
Small Business Tax Write-Offs 
Provider of Online Accounting Software Offers Tips to Mitigate Tax
Time Troubles for SMBs 
SAN FRANCISCO, CA -- (Marketwire) -- 03/19/13 --  Tax season has
always been overwhelming for small business owners, which may explain
why some small businesses (SMBs) have shown questionable judgment,
claiming spaghettiOs, plastic surgery and undergarments as
deductions, according to a new survey of accountants. This year poses
even greater anxiety based on policy changes from Washington. In
fact, the second annual survey from Xero, online accounting software,
found that nearly one in four accountants say government regulations
and tax policy had the biggest impact on small businesses this year
-- more than one in 10 attribute this to uncertainty surrounding the
"Fiscal Cliff."  
According to the 400 U.S. based accountants polled, the biggest
mistake small business owners make is not keeping their financial
records up-to-date, followed by a lack of understanding about their
tax obligations. To best prepare for the changes ahead while staying
on top of traditional challenges, small business owners must know
their financials (and financial partners) better.  
"The most common question I'm asked is, 'How can I save more money?
I'm scared of all the new tax increases,'" said Jody Padar, Xero
partner and CEO and principal of the New Vision CPA Group. "I wish I
could provide a universal answer, but the fact is no two businesses
are alike and there are many factors involved in financial planning.
What I can say in all confidence is to keep a close eye on your
finances, find an accountant you like and trust, and see them at
least once a month."  
The Cloud Saves You Time & Money 
 Small businesses that employ this
approach will not only save time, but most importantly, money. A full
72 percent of accountants feel they could provide better advice if
given a real-time view into their client's finances, and nearly one
third would be willing to offer discounted fees to sit down to a
reconciled ledger. Fortunately, cloud accounting makes this possible,
and it's on the rise. In 2013, 43 percent of accountants are planning
on offering cloud services, an 11 percent increase from last year.  
"More and more small businesses are realizing the benefits of
real-time access to their financials. And our survey provides
validation on the importance of cloud-based offerings. We saw
impressive adoption in 2012 and expect to continue to grow rapidly,"
said Jamie Sutherland, Xero President of U.S. Operations. 
Xero has a dedicated network of expert accountants who provide
insight and best practices for small businesses. Below are tips from
Xero's accounting partners who offer advice that SMBs can employ for
tax time and throughout the year.  
TOP TAX TIPS FOR SMBS 
 (FROM XERO ACCOUNTING PARTNERS SURVEYED) 
Tip #1: Record Receipts Remotely: Establish and maintain an accurate
system for storing your receipts. Today's cloud-storage technologies
offer a gamut of easy and affordable ways for SMBs to keep track of
their expenses. Xero even has a mobile receipt capture. One click
from your camera on an iOS or Android device and bid adieu to the
crumpled receipt. 
Tip #2: Beautify Your Business: Section 179 of Small Business
Expensing allows SMBs to deduct the full purchase price of qualifying
equipment and/or software up to $500,000. This is a 2013 tax
extension, but it was on the "chopping block." Take no chances come
2014 and bolster your business needs (and upgrade). 
Tip #3: Home Is Where the Smart Is: Starting in 2013, the home office
deduction offers a simplified form that caps the home office
deduction at $1,500. The new form is a great option for those who
choose not to spend the time calculating home offices expenses,
depreciation and carryovers of unused deductions. This is NOT a
replacement of the traditional home office form. Taxpayers can still
file the original form if their home office exceeds $1,500.  
Tip #4: Tax Changes for Tax Time
 Payroll Tax & Healthcare Tax: What
SMBs NEED to know.  


 
--  Payroll: The American Taxpayer Relief Act did not extend the payroll
    tax, but the 2 percent "break" was only a couple of years old (2011
    & 2012). This change is more of an unfortunate recant, than a tax
    hike.
--  Healthcare Tax(es): Under the Patient Protection and Affordable Care
    Act (PPACA), beginning in 2013, higher income taxpayers must start
    paying a 3.8 percent additional tax on Net Investment Income (NII).
    Additionally, high earners will incur an Additional Medicare Tax of
    0.9 percent on wage and/or self-employment.

  
Tip #5: Accounting Season Is Every Season: Make time for your
accountant year-round, not just during tax season. Select an
accountant with a fixed fee and value price that includes tax and
accounting services. There is no excuse for improper planning, and
proper financial counsel brings peace of mind and money. 
Tip #6: Money for the Taking: Out-of-pocket expenses landed as the
number one overlooked deduction followed by auto expenses, according
to Xero's survey. So track those miles, save those dinner receipts,
and write off that iPhone 5 -- it will all add up in the end.  
For an infographic on the survey results please visit:
http://xero.com/infographic/us-tax-2013 
About the Survey
 Zogby Analytics was commissioned by Xero Limited to
conduct an online survey of 400 accountants in the U.S. The survey
was conducted from February 14 through February 21, 2013. Based on a
confidence interval of 95 percent, the margin of error for 400 is +/-
5.0 percentage points. This means that all other things being equal,
the identical survey repeated will have results within the margin of
error 95 times out of 100. 
About Xero 
 Xero is beautiful, easy to use online accounting
software for small businesses and their advisors. The company has
over 135,000 paying customers and 200,000 users in more than 100
countries around the world. Recently Xero garnered a five-star review
for Software As Service from CPA Practice Advisor. Xero's U.S. team
is based in San Francisco. Xero is hosted with Rackspace in Chicago.
See http://www.xero.com  
Media Contact: 
Kristin Farrell
(415) 963-4174 ext. 10
Xero@bordersgratehouse.com 
 
 
Press spacebar to pause and continue. Press esc to stop.