Tax Tips for Small to Medium Sized Business Owners
Running a business is hard work…and it can be expensive as well. It’s certainly part of the American dream, but you need to be strategic about how you think about your expenses and, of course, your taxes. Thinking ahead about taxes is one key thing that you can do to keep your business in the black. Here are some tax tips to consider this year:
Track Your Deductions Throughout the Year
This is one of the most important things that you can do as the owner of a small or medium size business. By implementing a system for tracking all of your potential deductions and keeping all pertinent receipts you will have what you need when it comes time to file. Keep in mind that capital equipment, printers, software, and other business supplies are deductible and can help your bottom line at the end of the year! Don’t forget to deduct home office expenses if you have one that qualifies. Keeping track of all of these potential deductions will add up and save you lots of time and stress at tax time.
Get Organized and Create a Filing System
Along the same lines, keeping all of your personnel records and other tax forms that you collect throughout the year is important. An organized filing system will help you keep all of your paperwork in order and minimize confusion and discrepancies on your tax return.
Take Advantage of All Relevant Tax Credits
The IRS offers many tax credits for small and medium size businesses. For example, if you start a 401K Plan, your small business can receive a substantive tax credit for the first three years after starting the plan to help you offset the costs of starting it up. Other beneficial tax credits include the health care tax credit and the energy investment tax credits.
Know the Rules for Travel and Entertainment Related Deductions
Understanding what the IRS sees as “red flags” can really help you when it comes to your tax returns. One area of focus is deductions related to small business travel and entertainment expenses. For example, you can deduct the cost of a hotel related to a business trip, but you can only deduct 50% of your meals while on business travel.
Get Help When You Need It
If you feel like your annual taxes are too complex or stressful, it might be a sign that you should get some help with your annual return. A CPA, tax attorney or tax firm can help review your documents, protect you in the event of an audit and give you tax advice looking ahead.
Success Tax Relief Can Help Your Small or Medium Size Business Come Tax Time
Preparing your taxes can take a lot of time, effort and can be very stressful for business owners. Success Tax Relief has more than 30 years of experience saving businesses time and money. We can review your returns and make suggestions for maximizing deductions and make sure you are taking advantage of all potential tax credits. Give us a call today at 1-877-958-6638 to speak with one of our experienced tax professionals.