Accountable Plans
In short: We’ll help you navigate the complexities of mixed expenses and reimbursements while keeping your S-Corp compliant and tax-efficient
Why Choose Us?
1. Avoid IRS Pitfalls with Proper Expense Management.
When it comes to S-Corps, mixing personal and business expenses will lead to the IRS issues. If you pay mixed expenses (like home office or mileage deductions) directly from your S-Corp, the IRS will reclassify those payments as shareholder distributions. This can trigger a costly audit, especially if those distributions exceed your wages. At our firm, we ensure your expenses are handled properly, so you never have to worry about unnecessary scrutiny.
2. Stay Compliant with an Easy-to-Follow Reimbursement Process.
Managing reimbursements within an S-Corp can be tricky, and here is how we make it work for you:
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Create an Accountable Plan.
We’ll help you set up a plan that outlines which expenses are reimbursable and how they are processed. Reimbursements are typically done monthly or quarterly for ease. -
Calculate the Business Use Percentage.
We’ll assist you in determining the portion of your expenses that can be attributed to business use. This includes home office deductions and mileage for mixed-use vehicles. Our team ensures the numbers are accurate and well-documented for IRS compliance. -
Apply the Percentage to Your Expenses.
For home office expenses, we’ll calculate the portion of your rent, utilities, insurance, and more that can be reimbursed. Similarly, for mileage, we’ll help you track your business miles and reimburse you accordingly. We also offer tips on using the right credit cards to simplify tracking. -
Handle Depreciation Calculations.
If you own property or a vehicle that’s used for business, we’ll assist with depreciation. This allows you to deduct the cost of expensive assets. We also guide you through depreciation recapture taxes when you sell the asset. -
Submit Your Reimbursement Request.
We’ll streamline the process by helping you submit your expense claims, keeping you organized and prepared for any audits. -
Reimburse Yourself.
You’ll easily reimburse yourself from the S-Corp account to your personal account or by check. -
Record the Reimbursement.
Our team logs all reimbursements as business expenses in your S-Corp records, keeping everything tidy and audit-proof.
3. Let Us Handle the Complex Paperwork
We understand that managing reimbursements and keeping track of mixed expenses can be overwhelming (and boring). That's why our team simplifies the process for you: just send us your total mixed expenses for the quarter, and we’ll take care of the calculations, deductions, paperwork, and bookkeeping. You won’t have to lift a finger beyond submitting your expenses and transferring the funds.