When running a small business, saving money and cutting costs where you can should always be a priority. By being smart when dealing with taxes it can actually save you a considerable amount of money. If you are efficiently dealing with your taxes, it could be the difference between a steady profitable business to one that’s just barely getting by.
You need to be smart when it comes to your small business finances, and you can do this by making sure that you are constantly seeking ways to save money. Here are some tax saving tips for your small business that you should implement to really see a difference in your business finances.
Use tax software
This may be one of the obvious ways to deal with your taxes efficiently, however not enough small business owners utilise tax software enough. Using tax software can save small business owners headaches and stress that can come with dealing with taxes and filing tax returns. There is a variety of software available, including this tool from SimpleTax, and they all come with the benefit of accuracy. Although you can’t completely eradicate errors, using tax software can help you by minimising human error.
There are multiple benefits of having tax software and the biggest is that it can save your small business money. It can also reduce the amount of assistance you need from an accountant, enabling you to save even more in accountant costs.
Track your business spending
Keeping a track on business spending and expenses can help you save money. If you are not paying attention to business spending, then you could be losing out on thousands that you can claim back. For example, you need to make sure that you can keep track of how much you use your car for businesses purposes. Whether it is meeting clients or going to networking events, you need to keep an eye on the mileage and the fuel used in order to save yourself money. Be thorough and rigorous when it comes to watching over business spending.
Home office expenses
If you work from home as a small business then there are many different home office expenses that you can claim. Many small business owners don’t take the full advantage of tax savings because of lack of knowledge. Although dealing with taxes can be tedious, taking the time to learn about them will help your business in the long term.
If you work from home as a self-employed business owner you may even be eligible to claim a portion of your costs for things like: heating, electricity, council tax, mortgage interest or rent, and even internet and telephone use. Make sure that you are aware of all the benefits that may be available to you, especially if you work from home.
Keep on top of your receipts
You need to make sure to track all of your business receipts, however there are ways of avoiding having to actually keep all the physical receipts, for example by having a credit card that you use for all your business expenditure. However you track your expenditure you need to make sure that you keep it organised. If you are handing your accountant a box full of receipts, then you will incur huge costs for your business from the amount of time you require from your accountant. Making sure that you track all of all your receipts will allow you to save money as it will record all your business expenses and help you to see where you might be able to cut back.
There are many ways in which you can easily record and keep on track of your receipts. For example, you can uses apps such as 1tapreceipts to capture your receipts with your smartphone. This can ease the stress of making sure to keep all the business receipts together.
There are just some of the ways in which you can save money by being smart about dealing with your taxes.