Keep More Money in your Pocket with these Small Business Tax Saving TipsMay 9th, 2018 by Integrity Accounting
The risks of starting a business are high. But the rewards are equally great. The best way of increasing your chances of success is by keeping your expenses under control and not overpaying on your taxes. However, a survey conducted by personal finance expert Garrett Gunderson found that among his small business owner clients; approximately 93% had overpaid on their taxes over the past dozen years.
With the tax season behind us, chances are as a small business owner, you may have lost out on certain tax breaks—especially if you didn’t have the help of an accountant. Here are a few tax tips and money saving ideas that can help you avoid unnecessary taxes and keep more bucks in the bank.
Keep all receipts. Why do this? Because keeping receipts create the roadmap of your expenses throughout the year. Many of those receipts are for goods and services that can be deducted on your taxes, offsetting taxable income. Depending on your business structure, there are specific deductions you can take for certain structures, plus deductions that apply across all structures. Just remember to create a system for yourself that organizes your receipts for the next year.
Put money in a traditional IRA. Contributing to your IRA is considered a pre-tax contribution which translates to having less taxable income at the end of the year.
Set reminders to pay quarterly taxes. Stay on top of this responsibility through properly addressed envelopes so it’s hard to miss deadlines.
Make charitable donations. This reduces your tax burden and helps your small business get its name out there in the community while helping others. Remember your total tax deductions must exceed the standard deduction.
Get professional help. A certified bookkeeper knows the ins and outs of the tax code and can help your business take advantage of deductions, so you don’t overpay in taxes.
The financial experts at Integrity Accounting can help you avoid tax overpayment and keep your expenses focused on the bottom line. Call 505.205.1900 for a consultation or click to schedule an appointment.