Andrew Jenkins

An accountable plan is one of the more straightforward tax tools available to small business owners, and one of the most consistently underused. The basic idea is simple: your business reimburses employees (including owner-employees) for legitimate business expenses, and those reimbursements don't show up as taxable income. The business gets a deduction.

Most small business owners and independent contractors know they're supposed to file 1099s. Fewer have a clean process for doing it. You get to January, realize you never collected a W-9 from the contractor you paid in April, and spend two weeks chasing down a Social Security number from someone who has moved on. Tax season becomes a scramble that could have been a formality.

Owning a business is a dream for many entrepreneurs, and for good reason. The ability to be your own boss, set your own schedule, and pursue your own business ideas offers a level of freedom and personal fulfillment that’s hard to find in traditional employment. Many business owners are drawn to the flexible schedule and the chance to create jobs in their community, while also enjoying the financial rewards that come with building something of their own.