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Seven Commonly Overlooked Small Business Tax Deductions

Tax season is an important time of the year for small businesses. Limiting how much you pay in tax plays an important role in creating flexibility in your business, freeing up capital, and having the resources to grow and expand, which is why having good small business tax accounting is a huge asset for your business.

 

 

One of the most effective ways to limit how much you pay in tax is by taking advantage of the various small business tax deductions.

 

Failing to claim all the small business tax deductions you’re entitled to is like flushing money down the toilet. As small-business owners prepare their taxes this year, it’s important they don’t miss any of these most commonly overlooked tax deductions, to avoid paying more money than necessary,” says Steve Nicastro on nerdwallet.com

Advice Small Business Owners Need to Prepare for Tax Season

It’s that time of year again – tax season!

It’s that time of the year where you pull out your shoebox of receipts and try to recall all your business expenses for the year, hoping you didn’t overspend. But, in all seriousness, it’s an important time of the year for small businesses. It can also be a stressful time, anticipating whether or not you will receive a tax rebate or have to hand over some of your hard-earned money to the government.

To help you get ready for tax season this year and for years to come, here are some useful tax preparation tips:

Choose Your Tax Preparation Method Wisely

Preparing effectively for your taxes can have a big impact on the success of your business, and it starts with the method you choose to prepare your taxes. Do you attempt to do your taxes yourself?

Frequently Overlooked Small Business Tax Considerations

While many new businesses, especially freelancers and sole proprietors, tend to have a DIY attitude and want to do things themselves to save money, taxes are an area where you should absolutely defer to a professional.

Here are there small business tax considerations that will help you remain friendly with the tax man:

1. Hire an experienced accountant
Are you confident enough in your abilities to do your own business taxes? Are you sure your records are accurate? Did you take advantage of all the tax deductions available to you?

Unless you are an accountant, you should seriously consider hiring one. Your tax records are not something you should play around with, and failure to keep up to date and accurate records could land you in hot water with the government.

You have to consider the tax implications of your business.