Tax Tips for Food Truck Owners
Tax season is quickly approaching! Sometimes it can be difficult to know which deductions you qualify for, how much you owe, and any other number of details related to filing taxes. Protect your food truck business from tax penalties by documenting your tax deductions, keeping track of sales tax, and investing in expert financial advice.
Document Your Tax Deductions
As a business owner, there are several deductions you can take advantage of. These deductions will save you money on your taxes. For example, you can deduct the miles traveled in your truck while doing business. It is wise to keep track of all miles and direct expenses for your truck (maintenance, repairs, etc.). You should also track travel expenses for food and lodging if traveling for a trade show, conference, or festival. These can be written off as necessary travel business expenses.
Keep Track of Sales Tax
Sales tax is one of those complicated things you must keep track of. Failure to collect and turn over the correct amount of sales tax could cause serious legal issues. If you over-collect sales tax you will need to give the overage to the state or refund it to the customer. That’s a long a complicated process. If you under-collect, you will be held liable for paying the difference. After you register your business, you will receive notices alerting you to changes in state and local tax rates. Be sure to implement these changes immediately and keep track of all money collected. This will save you from a major headache later down the road.
Invest in Expert Financial Advice
Paying the correct amount of taxes and making sure you get what you deserve can be confusing and complicated. When in doubt, invest in professional financial advice. Outsourcing your accounting and bookkeeping to third-party firms is easier than ever. Outsourcing can be the most efficient and safe way to make sure you check all the legal boxes and get the most for your business.
As a business owner you must wear many hats. An expert chef, talented marketer, and disciplined businessperson are just a few. Don’t forget to track your logistics just as much as you track the quality of your food when it comes to tax season.
For more information on how Where’s The Foodtruck can help you and your business, check out our Vendor Services page.