Tax Tips: What Small Business Owners Need to Know
As the end of the year creeps closer, many small businesses begin to think about ways that they can minimize their tax burden for both the current and coming year. Piecing together your company’s finances can be a challenge, but it can be worth the effort to save some valuable cash. Here are three simple and effective tax tips that can help your small business immediately and long-term.
Prepare as You Go
Sifting through paperwork and old receipts probably isn’t one of your favorite activities. A top tax tip is to simply get as organized as possible so that you save time and effort in the Spring. By waiting until the last minute to organize your company’s finances, you not only create additional stress but there is also a greater chance of error. Instead, create a system to track expenses year round and enter them into your accounting software.
Understand Common Small Business Deductions
If you want to save money on your taxes, you should familiarize yourself with some of the most valuable small business tax deductions. Among these is the Section 179 deduction. This allows your business to deduct up to $500,000 towards the costs of purchased or financed business equipment. There are also other deductions related to equipment depreciation. These are just a few to get you started, and the IRS website is a good resource to learn about more.
Hire a Professional
One of the most overlooked tax tips is to hire a professional to help with your taxes. This may seem like an extra expense, but the fact is that an accountant can not only help your business save money on taxes, but they also might help you avoid trouble in the future. Finally, having professionals in your corner saves time so that you can get back to the business of making money.
As you plan for taxes, consider how your small business financing choices impact your company’s bottom line. Contact Smart Capital Lending Group at 407-202-8494 now to discuss our business finance opportunities for small businesses that can provide you with additional capital for operations and growth.