When it comes to tax season, many business owners cringe. It is a dreaded time of year for anyone that hasn’t been staying on top of all the bookkeeping and accounting sides of owning a business. This can often lead to missing out on certain tax deductions that could be putting money back into your pocket. Propel Your Accounting is here to talk about some deductions that most small business owners should be able to take advantage of this upcoming tax season.
What is a Tax Deduction
It is important that business owners understand what tax deductions are and how they work. Tax deductions are amounts of money that can be subtracted from the taxable income that the business has at the end of a tax year. This can do wonders in lowering tax bills and putting money back into the pockets of business owners. Here are some of the deductions that small business owners need to make sure they are taking advantage of to help lower their taxable income.
– Traveling Expenses: Many businesses include work travel to do business. If this is the case for your business, make sure you are keeping track of receipts and documentation that can provide information for your taxes so that you can deduct these expenses. Some of the traveling expenses that qualify are hotel reservations, rental car fees, food expenses, airfare and more.
– Office Supplies: Most businesses require office supplies at some point as well. If you have to purchase copy paper, ink, computers, writing utensils, and other office supplies, these are tax deductible as well. Again, it is essential that you have documentation to back up the claim that they were purchased during that calendar year.
– Insurance Expenses: There are insurance policies that business owners must have to protect them against litigation. For those that have a home office that is used solely for business purposes, a portion of your home insurance can be a deduction at tax season. You are going to need to know the square footage that is being used for your business so that you know what percentage of the insurance premiums that can be used as a deduction.
– Phone & Internet Costs: All businesses are going to have phone and internet expenses to keep things running. While many business owners are moving toward cell phones rather than landlines, those phone lines can be deducted from taxes. Likewise, all the money you are paying for internet access for your business can also be deducted.
Bookkeeping, Accounting, Business Consulting & HR / Admin Services in the United States of America
If you are tired of trying to keep it all straight, you can turn to Propel Your Accounting to take that off your plate. We will ensure your bookkeeping is accurate and organized so that tax season isn’t a nightmare. When you let us handle your accounting needs, it provides you the freedom to focus on other aspects of your business. Call us today!
