When you own a small business, there are many things to keep track of and many don't think about taxes until they are due.
With a little preparation and a few tricks, you can not only make your tax filing easier, but save money in the long run.
Accounting software is a huge benefit when it comes to your taxes for small businesses . It can help track expenses, payroll, and other places your money is going. Something as simple as entering receipts can help with deductions you might not get if you lose them. Using accounting software can help even less computer savvy business owners maximize deductions and increase their profit.
If you are self-employed, contributing to a retirement fund can decrease your withholding and help save for the future. You can contribute up to $6,000 a year towards a traditional or Roth IRA and won't have to pay the taxes on it until retirement.
If you work from home or use your personal vehicle for business, you can deduct the space in your house for business office as well as vehicle expenses. If your office takes up 10% of your house, you can deduct that portion of your utility, homeowners insurance, security, and other bills. You can also deduct the mileage at a set amount per mile.
With a little planning and some careful consideration, there are many ways your small business can benefit and maximize tax savings.