Welcome to the Hedgi AI blog! We are thrilled to begin this journey with you. At Hedgi AI, we aim to simplify accounting and tax filing for small businesses through advanced AI/ML technology.
What is Hedgi AI?
Hedgi AI is your new digital assistant for all things accounting. Imagine having a team of expert accountants available 24/7, ready to sort through your expenses, identify tax deductions, and help you file your taxes accurately—all without the hefty price tag. Our AI-driven software automates tedious tasks so you can focus on what matters most: growing your business.
What is a Tax Deduction?
When you run a business, you incur various costs. Some of these costs can be deducted from your total business income, reducing the amount you owe in taxes. These costs are called business expenses.
To be deductible, a business expense must meet two criteria:
Ordinary: The expense is common and accepted in your field of business.
Necessary: The expense is helpful and appropriate for your business. It doesn’t have to be indispensable.
Here’s a simple breakdown:
Ordinary Expense: This is something typical for your industry. For example, an online store owner buying shipping supplies.
Necessary Expense: This is something needed to run your business effectively. For example, a graphic designer subscribing to design software.
However, not all expenses can be deducted immediately. These distinctions are important:
Cost of Goods Sold: If you manufacture or purchase products for resale, these costs are deducted to figure your gross profit. This includes the cost of raw materials, storage, and direct labor.
Capital Expenses: These are investments in your business that are treated as assets, like purchasing new equipment. You can recover these costs over time through depreciation or amortization.
Personal Expenses: Personal expenses are generally not deductible. If an expense is used partly for business, you can only deduct the business portion.
Why Are Deductions Important?
Tax deductions reduce your taxable income, which can significantly lower your tax bill. Think of deductions as a way to get credit for the money you spent to run your business.
How Can Hedgi AI Help?
Hedgi AI takes the guesswork out of identifying tax deductions and ensures you don’t miss any potential savings. Here’s how:
Automated Categorization with Machine Learning: Our AI reviews your transactions and categorizes them accurately.
Monthly Audits: Hedgi AI provides monthly audits to review your deductions, ensuring compliance and maximizing tax savings.
Easy Tax Filing: Use our built-in tools to complete your S-Corporation tax return quickly and accurately.
Ready to simplify your accounting and tax filing? Sign up for free and see how Hedgi AI can transform your business finances.
Join us today and let Hedgi AI be your digital accounting assistant!
Stay tuned for more blog posts where we’ll delve deeper into various tax topics, tips, and tricks to help you run your business smoothly.