This And That About Writing Off A Phone System As A Business Expenses

This And That About Writing Off A Phone System As A Business Expenses

Today's workplaces, including those in Arlington, are full of all kinds of technology, gizmos, and gadgets. However, the phone is one of the most significant components. It is a tool that employees use to talk to one another, hold meetings with potential investors, and generate sales. Of course, many businesses have traditional landlines or cell phone plans. There is another option available though, which many companies are choosing over the rest.

What Is A VOIP Phone Service?

A VoIP system, also commonly referred to as a Voice over Internet Provider service, allows one's phone line to run through their Internet connection. Some of the benefits of VoIP include but are not limited to...

  • Unlimited Channel Lines
  • Conference Bridging
  • Customized Configurations To Email Inboxes And Voicemails

Workers don't have to stay planted at their desks to utilize the service. Rather, calls can be redirected to cell phones, which means they can be answered from virtually anywhere. In turn, this feature allows managers to monitor cell usage and log call time. VoIP also increases employee productivity and improves customer satisfaction. There is still another reason to select the service though, so interested Arlington persons should continue reading to learn more. 

The VOIP Service Can Be Written Off As A Business Expense

The Internal Revenue Service has plenty of rules and regulations regarding business phone expenses. For instance, personal calls cannot be part of the deductible amount. Of course, figuring out which calls are for the business and what ones are personal is easier said than done. The feat can be downright tricky, challenging, and even overwhelming at times. The easiest way to differentiate between the two is simply to purchase two phones, one for business, and one for personal use.

Documentation is the key. The person needs to fill out a Schedule C Tax Form and determine the percentage. They must have bills and call logs to prove that the phone was used strictly for business. These things can be avoided by using a VoIP system. As long as the organization streamlines the phone service through a sole business Internet connection, the owner can write it off as an expense without all of the hassles.

Be Sure To Have Evidence When Writing Off Landlines And Cell Phones

A lot of business owners don't believe that their companies will ever be audited. However, it is possible for an auditor to stop by and review the materials from time to time. If this happens, the professional will want to see proof of the business expenses. Hence, to avoid any tax issues, it is a good idea to restrict cell phone use to only those employees that really need them. Also, the organization will find it in their best interest to make sure that the worker has their personal cell phone on them at all times. Continually time logging is a must too as nobody wants to find themselves in hot water with the IRS. 

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