The Tax Man Cometh: 3 Small Business Tax Tips You Need To Know For 2020

The Tax Man Cometh: 3 Small Business Tax Tips You Need To Know For 2020

If you’re a small business owner, you know how costly running a business can be.

You have to spend a small fortune on things like recurring rent and equipment just to keep your business going, so it’s important that you cut costs and maximizing savings.

Especially on things like taxes, which can cost you big if you’re overpaying or unsure of the best small business tax tips.

Check out some of our tax saving tips below to help you and your business in the future!

Preparing small business tax filing

3 Important Small Business Tax Tips

Not sure how to handle your business taxes in the most effective way possible?

Here are 3 small business tax tips that can help you save big on your taxes, so you can put more money back into your business.

1. Keep Tabs on All Your Receipts

Want to get back as much as possible on your taxes? Then keep every receipt you get for goods and services. Many of these things can be deducted on your taxes, and even offset your taxable income.

And if you’re worried about holding onto all of your printed receipts for a year, don’t worry.

There are many apps out there that actually allow you to store all your receipts digitally in one place. And what’s better is that many of these apps can be digitally synced with your tax-filing software, so you can keep tabs on everything.

Additionally, you should try to implement a filing system to keep all of your tax documents on hand. That way you’ll be ready when tax season comes and take advantage of every deduction available to you. This can also help you keep track of your general spending habits and identify areas in which you can cut back.

Are you a commercial property owner wondering about your tax deduction options? You should learn more about the capital allowance claim to see if you can claim qualifying items of capital expenditure as a tax deduction.

2. Hire Independent Contractors

As a business owner, you need employees to keep your business up and running.

You don’t necessarily need to be hiring full-time employees in order to do that. In fact, hiring too many employees may end up costing your business big because of payment factors like payroll taxes and benefits.

That’s why you should consider hiring independent contractors. You’ll get the same quality work done without needing to pay those extra costs. It’ll also mean you’ll have to do less paperwork regarding employee payment during tax season.

3. Deduct Taxes for Your Home Office

Do you ever work from home? If so, you may be able to deduct your home office as an expense.

That means you can save on things like internet service, utilities, and even mortgage interest payments, which can add up to major savings.

It’s important to note that you’ll have to prove to the IRS that your home is your principal place of business in order to take advantage of this tax business. If it isn’t your principal place of business, you may still be able to take advantage of the home office deduction though.

Filing taxes

Final Thoughts on Small Business Taxes

Tax season can be scary, but this is especially true for a new small business owner trying to figure everything out.

If you follow the small business tax tips outlined in this article, you can stress less and ultimately save more on your taxes!

Did you find the tips in this article helpful? Looking for more information? Check out the rest of our website for more insights!

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