Thursday, July 10, 2008

Tracking you business income and expenses has never been simpler

What Company Is Offering:

Bootstrap is a very simple-to-use web service that helps you track income and expenses, pay estimated taxes on time, and see how your business is doing. It's perfect for self employed people.

How It Works:

They calculate your businesses profit through the end of the IRS quarter (or through today's date if the quarter hasn't ended.) For example, if you were to look at the taxes page on June 10, you would see profit - or loss - through May 31, which is the end of the second quarter for IRS purposes.
They then calculate the self employment tax (which consists of social security and medicare contributions) using the latest IRS rates. To the self-employment tax, they add your business income tax. For this, they simply use the marginal tax rate based on the profit to date. For businesses earning higher income, this may result in a higher tax payment than using the average rate, but we figure it's better to be safe than sorry.

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1 comment:

Chris Hutchins said...

Thanks for your great piece on GoBootstrap. We've recently rebranded as Outright. Just wanted to let you and your readers know that we can now be found at