Getting funding for your startup business is one of the most important decisions you’ll make as a business owner. The type of startup funding you choose will have long-lasting impacts including:  How you structure your business and file taxes What percentage of ownership or equity you and your investors get How much profit your business generates and how much you keep What type of bookkeeping and accounting services you need Startup funding can cover the initial costs of setting up and running a company. It can also help you continue to grow years after you’ve launched.  Most start ..read more

The biggest rule of thumb when running a company is to keep your personal and business finances separate. To do that, you need to choose the best business bank for you, which may not be the same one you use for your personal finances.  Business bank accounts have different terms and benefits than personal accounts. As an online accounting service, Xendoo works with many companies and business banking services.  The best business bank for you depends on your particular needs. But there’s much more to consider. Some banks are stronger in commercial lending, while others have stronger l ..read more

You’ve put your heart and soul into your business. So why does it feel like you’re spinning your wheels, trying to keep up with your core business and your administrative overhead at the same time?  When you first started your company, it might have made sense to try to handle your own bookkeeping and accounting needs. After all, it kept costs down. But it may not have taken long to realize that you could use some help.  Why not rely on an online accounting service to take these tasks off your plate so you can focus on your business?  Today, we’ll take a closer look at the busi ..read more

One of the most important decisions for business owners is which type of business entity to form. Your business structure impacts your tax savings, accounting practices, and how you pay yourself.  Examples of business structures include:  Sole proprietorship Partnership Limited liability company (LLC) S corporation (S corp) C corporation (C corp) Businesses often weigh the pros and cons of forming an LLC vs. S corp. Xendoo does online accounting, bookkeeping, and taxes for businesses, so it’s a question we answer frequently.  In this article, we’ll explore the differences betw ..read more

Generally, the chances of the Internal Revenue Service (IRS) auditing you are low. For most taxpayers, the audit rate is less than 1% to 2%. However, businesses tend to have more complex tax returns, so auditing is a concern. How far back can the IRS audit you? Typically, the IRS only goes back to audit tax returns that you’ve filed within the last three years. However, there are exceptions—like underreporting or foreign income mistakes—where the IRS may audit your returns from the past six years or anytime (if the IRS suspects fraud).  Businesses can take steps to avoid triggering an aud ..read more

There’s a lot to keep track of when you run a business. Many business owners look at their calendars halfway through April and realize that they missed their tax deadline. If this happened to you, it’s not too late to take action. You might be wondering: What happens if you miss the tax deadline? In this article, we’ll go over everything you need to know about late tax filings and payments and provide an action plan to get you back on track. Table of contents  Tax filing deadlines What happens if you’re getting a refund (you don’t owe taxes)? If you miss the tax deadline and owe taxes Wh ..read more

Most small businesses have a low probability of going through an IRS audit, but it’s possible.  What happens if you get audited and don’t have receipts to back your expenses? It’s a common question and concern for many business owners.  The best way to avoid headaches during an IRS audit is to keep accurate business records and bookkeeping year-round, and that includes tracking receipts.  Receipts are a paper trail for your business transactions and taxes. Without them, it’s harder to prove your tax deductions and other records are accurate. However, forgetting or misplacing rec ..read more

Form 1065 is the end-of-year tax form for small businesses that operate as partnerships. So if you registered your business entity as a partnership, you must file the form at the end of your company’s tax year.  With all the responsibilities that come with running a business, it can be difficult to stay on top of the latest tax requirements, regulations, and deadlines. Form 1065 is a complex tax form with many requirements.   While you may pass off your tax return filing to a professional, it’s helpful to understand what’s going on with your business taxes. If you’re a small bus ..read more

Running a business is, without a doubt, a challenging task that requires a lot of commitment, effort, and attention to detail. Did you know 82% of small businesses fail due to cash flow management? Besides managing all aspects of the business, taking care of your books is crucial to achieving financial success while being tax ready all year round. At Xendoo, we know you didn’t start a business to do the accounting and taxes; but we did. In this blog post, we’ll explore the necessity of catching up on your bookkeeping and how it will benefit your company. To start, let’s look at why keeping you ..read more

As a business owner, you can pay less in taxes by taking advantage of credits or deductions. Tax credits lower the amount you owe. For example, if your tax bill is $15,000 but you have $5,000 in tax credits, you’ll only owe $10,000. But, there are over 30 business tax credits. Which should you claim to get the most tax savings? What forms do you need to file?  If you’re claiming more than one business tax credit, you’ll need to fill out Form 3800, also called the General Business Credit form. In this guide, we’ll show how to file Form 3800, maximize your tax savings, and find out if any o ..read more