📢𝐌𝐲𝐭𝐡 𝐯𝐬. 𝐅𝐚𝐜𝐭: 𝐃𝐞𝐛𝐮𝐧𝐤𝐢𝐧𝐠 𝐂𝐨𝐦𝐦𝐨𝐧 𝐀𝐜𝐜𝐨𝐮𝐧𝐭𝐢𝐧𝐠 𝐚𝐧𝐝 𝐓𝐚𝐱 𝐌𝐢𝐬𝐜𝐨𝐧𝐜𝐞𝐩𝐭𝐢𝐨𝐧𝐬!

🧾 𝙈𝙮𝙩𝙝 #1: "𝙄𝙛 𝙄 𝙙𝙤𝙣’𝙩 𝙢𝙖𝙠𝙚 𝙢𝙪𝙘𝙝 𝙥𝙧𝙤𝙛𝙞𝙩, 𝙄 𝙙𝙤𝙣’𝙩 𝙣𝙚𝙚𝙙 𝙩𝙤 𝙛𝙞𝙡𝙚 𝙩𝙖𝙭𝙚𝙨."

🧩 Fact: Even if your business isn’t highly profitable, tax filing is still required! Filing tax returns keeps you compliant and avoids potential penalties. Plus, reporting losses can be beneficial in future tax years.

💸 𝙈𝙮𝙩𝙝 #2: "𝘼𝙘𝙘𝙤𝙪𝙣𝙩𝙞𝙣𝙜 𝙨𝙤𝙛𝙩𝙬𝙖𝙧𝙚 𝙘𝙖𝙣 𝙧𝙚𝙥𝙡𝙖𝙘𝙚 𝙩𝙝𝙚 𝙣𝙚𝙚𝙙 𝙛𝙤𝙧 𝙖𝙣 𝙖𝙘𝙘𝙤𝙪𝙣𝙩𝙖𝙣𝙩."

🧩 Fact: While software helps with basic calculations, it doesn’t replace expert knowledge. Accountants provide guidance, strategy, and legal insights that go beyond what a tool can do, especially for complex issues.

📈 𝙈𝙮𝙩𝙝 #3: "𝘼𝙡𝙡 𝙗𝙪𝙨𝙞𝙣𝙚𝙨𝙨 𝙚𝙭𝙥𝙚𝙣𝙨𝙚𝙨 𝙖𝙧𝙚 𝙙𝙚𝙙𝙪𝙘𝙩𝙞𝙗𝙡𝙚."

🧩 Fact: Only expenses that are necessary and directly related to your business operations qualify as deductible. Personal expenses or any unrelated costs can’t be claimed, and misreporting them could trigger an audit.

💰 𝙈𝙮𝙩𝙝 #4: "𝙏𝙖𝙭 𝙥𝙡𝙖𝙣𝙣𝙞𝙣𝙜 𝙞𝙨 𝙤𝙣𝙡𝙮 𝙛𝙤𝙧 𝙗𝙞𝙜 𝙗𝙪𝙨𝙞𝙣𝙚𝙨𝙨𝙚𝙨."

🧩 Fact: Tax planning is beneficial for businesses of all sizes. Small businesses can save significantly by implementing strategic planning, helping maximize deductions and manage cash flow effectively.

🕒 𝙈𝙮𝙩𝙝 #5: "𝙄𝙛 𝙄 𝙝𝙞𝙧𝙚 𝙖 𝙗𝙤𝙤𝙠𝙠𝙚𝙚𝙥𝙚𝙧, 𝙄 𝙬𝙤𝙣’𝙩 𝙣𝙚𝙚𝙙 𝙖𝙣 𝙖𝙘𝙘𝙤𝙪𝙣𝙩𝙖𝙣𝙩."

🧩 Fact: Bookkeepers and accountants serve different purposes. Bookkeepers manage day-to-day records, while accountants provide in-depth analysis, strategic advice, and ensure financial compliance. Both are important for healthy financials!

📌 Stay informed and steer clear of these common myths to keep your business in great shape! Follow me, Iza Estinopo, CPA MBA, for more tips on smart accounting practices and tax insights tailored for business owners.