Business write offs

EA is an Enrolled Agent - you're in good hands.

He had to pass an IRS screening & testing, and he can represent you in the event of an audit. If I had a choice between a CPA or an EA I'd go EA every time. He's more than qualified.

If you needed to spend money on it to make money in your business, consider it deductible. Let your accountant tell you it's not if there's any doubt. Just keep records & receipts for everything.

You should be asking him, not us.

Is your business a Corporation, S Corporation, LLC, or Sole Proprietorship?

You never want to record a loss on a Schedule C (sole proprietorship). It is a huge IRS audit risk. The chances of being audited increase astronomically by reporting a negative Schedule C.

If you have formed a legal entity (Corp, LLC, etc.) losses are to be expected in the first few years.

The key thing to be remembered when deducting items is use. Write off everything except personal expenses. (i.e. mortgage, jewelry, clothes, groceries, dry cleaners, etc.)

Everything else is fair game. CPAs ARE as good as it gets.

If you did not file any legal forms (i.e. articles of incorporation, etc.) with the IRS or the state in which you do business, then you are probably a sole proprietorship.

Certain cities require you to register your business to conduct business in that city. That does not mean you are incorporated but simply registered to do business there.

Yes. CPAs are much better than EAs in my opinion.

I'm not knocking CPA's, but some of them never touch tax returns.  

 I'm a Sole Proprietorship and ALL my bills are paid by the Company checkbook. My Acct. figures it out and does my taxes, I also get a P and L every month.

 GL Kemosabe with the new business. Oh btw, you may want to lease that new car. It's alot easier to write off.

Understood. There are some TERRIBLE CPAs out there too.

And you are correct. There are several CPAs out there that just perform Audit and Attestation services and never even look at tax work.

Profit & Loss aka Income statement

 They keep a running total for your P and L. If you need to borrow money from the Bank they'll want it. And as far as meals, write em all off. Put em on a CC even if it's Jack in the Box.

Put everything on a CC and your Acct. or Book Keeper will know what to do, CJ is right.

No. It just costs you more money to have your accountant prepare this for you on a monthly basis. You should go out and buy Quickbooks to get your recordkeeping going. It is very easy to use and a must have for small business owners.

You can also track your personal expenses if you wanted.

Another alternate is to track everything in Excel. Record keeping is the most important thing to master when it comes to taxes. It may seem like a llot of work but it will save you a lot of momney in the future if you keep good records.