Smart Tax Tips for Small Business Owners
By Alan Olsen
Do you own a small business? If you do then you know what’s like to be busy. Small business owners have so many things to worry about and take care of. They have to wear a lot of hats and fulfill several roles. It’s all part of owning your own business. With so many things to do, sometimes, small business owners lose track of some important tasks.The problem is some ofthese tasks, like taxes, can’t really be overlooked. In addition, every small business owner wants to save as much money in taxes as possible. But many of them don’t know how to do it.
Save With These Easy-to-Use Steps
If you’re in this position, then read on because there are actually several basic tax savings tips that are easy to use and that will save you time and money. After all, for most small business owners every dollar counts. In fact, your taxes could end up being the difference in whether or not you’re profitable. So let’s take a look at some simple things you can do to save as much ofyour hard earned money as possible.
Tax-Planning Software–tax-planning software, or even tax-filing software, can help you big-time. Using bookkeeping software can help you track all your expenses as well as your important tax information. Trying to keep track of all of this on paper, or whenever you get around to it,is not a safe way to plan for taxes. You can also use software to file your taxes on your own. But for many small business owners it’s much easier to use an accountant, who knows these programs, as well as the tax laws, inside and out.
Keep Track of Spending–one of the best ways to save yourself money is by using all your deductions. As a small business owner you likely have all kinds of expenses. Every time you spend money for a business purpose that money can be counted as a deduction. So make sure you keep careful and detailed records of all your spending. When it comes time to file your taxes, all those little deductions can add up.
Contribute to Retirement Accounts–everyone likes to get paid. But before you pay yourself, first pay your retirement accounts. Contribute as much as you can to these accounts. This lowers your immediate tax bill by getting you a significant deduction. That could end up making or breaking your financial health.
Home Office Deductions–if you use your home as your office, you can also get a nice deduction. Many people overlook this option and they miss out on some nice tax savings. It never hurts to run the numbers and see if you could qualify for some ofthose nice savings.
Hire Your Family Members–one more way to knock a little more off your tax bill is to hire family members. This has several benefits. For example, if you hire your spouse, you can double the amount you can contribute to your retirement account. You could also hire your children because they usually will be in a lower tax bracket. That means by paying them to work you could lower your family’s overall tax burden.