4 Tax Deductions That Every Small Business Owner Should Knowby Agro Accounting CPA Accounting for Artists, Freelancers & Creative Com
We all are aware that finance management is an essential part of any business. People take on the stress of accounting and taxes, yet they overlook the importance of tax deductions. Small business owners can rely on income tax services for the self-employed to get guidance regarding taxes and deductions. If you take taxes lightly and think that you “have bigger fish to fry” as a business owner, it may cost you in the long run.
What is a tax deduction?
If you are new to the world of taxes, accounting, and finances, let’s start from scratch and understand what a tax deduction first is. Expenses that you can deduct from your total taxable income are known as tax deductions. If you claim deductions that match the IRS-approved criteria, you will have to pay smaller tax bills. Now, let’s look at a few tax deductions that may help small business owners reduce their tax bills.
- Office supplies – Something that is ordinary and necessary for running a business is tax-deductible. All the things that you purchase for your new or already settled office may fall under these deductions. So keep your receipts safe and use them wisely in the upcoming tax season. Some of the essential office supplies include furniture, equipment, electronics, and software. Whatever you pay for may be helpful while filing your taxes.
- Advertising and marketing – All the things that you use for promoting your business are tax-deductible. So whether you are paying for social media platforms or for billboards, posters, and banners, you can deduct it - whether it brings you new customers or not. Even the cost of printing your business cards may be tax-deductible.
- Travel and meal expenses – Many business owners have to travel from one place to another for business purposes. And if you are one of those business persons who spends a lot of time in airports for office trips, then you should keep your travel records safe and ready for tax season. Apart from trips, the expense of business meals can also be deductible. So keep track of all your receipts and records. However, entertainment expenses like sports or music events are no longer deductible.
- Employee benefits – Salaries, wages, bonuses, and commissions you pay to your employees are tax-deductible. If you contribute to retirement plans or other employee benefit programs, then it may also help reduce your taxes. Even if you are paying freelancers working for your business, that is also deductible.
The Final Word
These tax deduction tips may reduce the tax bill of any and every business owner. Also, there is no harm in hiring a tax preparation guide for small business owners. The valuable tips of tax professionals can make your tax filings hassle-free!
Created on Sep 27th 2021 04:08. Viewed 143 times.