Business 101: What Do Gross Income From Sales, Cost Of Goods Sold, And Deductions Mean?
Today, I have type of post that we haven’t had for you in awhile.
It’s a Business 101 post. What is that?
There are some basics about business that most business owners are afraid to admit that they really don’t know or understand.
Well, here at BBH we’re going to give you the answers to the questions you might have been too embarrassed to ask.
Today I have terms that are small business tax terms.
Here are the terms for today:
Gross Income from Sales – This will usally be the bulk of the income you receive from actually operating your business.
Cost of Goods Sold – This must be computed if your business uses inventory, in order to complete the business income portion of your tax return.
Deductions – These are the expenses you can deduct from the taxable income you made. Businesses are usually encouraged to come up with every legitimate deduction for reducing your taxable income and tax bill. Examples: capital expenditures, start-up, travel (notably vehicles), meal and entertainment expenses, business gifts, compensation, home office deduction, casualty losses.
Photo by Tax Credits
Related article
- 7 Apps To Help With Your Small Business Taxes (baybusinesshelp.com)
