As a small business owner, you know how difficult it can be to grow your business into something successful. Much of the time, small business owners are trying to scrimp and save where they can to reach their goals. Looking for ways to save money can be difficult because it often takes money to make money. However, some tax planning might be helpful in helping keep money in your pocket when tax season rolls around. Propel Your Accounting is here to share some tax planning tips with small business owners to help them reach success.
Importance of Bookkeeping
Keeping detailed records of all the comings and goings of your business is a crucial part of being successful. It is also a crucial part of tax planning. You should be keeping detailed records of all transactions, receipts, invoices and other important information. If you are meticulous in your record keeping, it can be hugely beneficial when tax season rolls around. If there are any deductions that you qualify for, detailed bookkeeping can help you identify them. It can also help you ensure you are compliant with all tax regulations that are in place.
Different Deductions for Small Businesses
Record keeping can help you find the deductions that you are eligible for. Here are some of them that you may qualify for:
– Home Office: You can deduct a portion of your mortgage if you have a dedicated home office in your house. The thing to remember is that this home office can be used solely for your business and can’t be used for other purposes.
– Employee Expenses: If you have expanded enough that you have employees, there are some deductions that you can enjoy including, salaries, wages, bonuses and more. If you have to send any of your employees off for training, you can claim their travel as a business expense.
– Health Insurance Premiums: There are some small businesses that feel strongly that they should be providing health insurance benefits for their employees. If this is the case, business owners may qualify to have those premiums paid.
– Retirement Contributions: If there are any contributions that are made to retirement accounts, they are usually deductible for small businesses. These funds can help your employees make plans for the future, but it can also be beneficial to business owners as well.
– Travel Expenses: If you have to travel for business, make sure you’re keeping receipts for the trip. Your transportation, lodging and meals can be tax deductible.
Bookkeeping, Accounting, Business Consulting & HR / Admin Services in the United States of America
If you have a small business and could use help with tasks like bookkeeping and tax planning, you can turn to Propel Your Accounting to help. We will ensure you are keeping the hard earned money you have in your pocket, where it belongs. We want to help our clients reach as much success as possible. Call us today!
