By: Sara Poe

All business owners – myself included – understand that every dollar counts. This couldn’t hold truer than during the often dreaded tax season. Navigating deductions and changes in tax laws can be tricky, tedious and time-consuming.

For that reason, more and more small business owners are turning to expert CPAs and bookkeepers for their tax prep solutions. With tax season fast approaching, here are three ways to reduce your small business taxes next year:

1. Shopping to Save. Whenever you purchase new technology, software, furniture, supplies or other equipment required to operate your business, always save your receipts or delegate your assistant with this important task. It’s also vital to keep a detailed record that breaks down the item purchased, the purchase price and the date placed into service. This will make it easier for you to authenticate the expenses that you claim on your tax return.
2. The Spirit of Giving. To support and inspire corporate giving, when your company makes donations of cash, property or supplies, these expenses are all deductible. Take advantage of an opportunity to align yourself with a non-profit organization or cause that reflects your values and the values of your brand. As a side note, employee, partner and officer bonuses are also deductible. You can also give yourself the gift of continued education! Attend a course or convention that furthers the skills you need to excel in the competitive marketplace.
3. Money In Your Pocket. If you work from home, discuss potential deductibles with your CPA, be it mortgage interest and insurance, utilities, depreciation and home repairs. Keep in mind that partnerships and corporations can also deduct expenses incurred from non-personal uses of your private vehicle. Your employees can also be reimbursed for business use of their personal vehicles. These expenses can include cost of fuel, maintenance and parking costs. As always, be sure to keep detailed mileage records which note the date, total miles, tolls, parking and – of course – the purpose of the trip. Vehicle depreciation and loan interest are also deductible. Your CPA can walk you through this and potentially save you BIG on your upcoming tax return.

As a fellow business owner and CPA who specializes in supporting small business owners, I strongly encourage you to take advantage of the many opportunities available to you to cut down on your taxes. Working with a CPA at Poe’s Accounting Services will take the stress out of this process and ultimately result in greater savings.

Feeling Less Than Prepared for Tax Season?

For those business owners who aren’t adequately prepared for tax season, now is the time to seek out a trusted tax professional and file for an extension. I urge you not to wait until a few days ahead of time; CPAs are extremely busy and may not be able to meet your needs – especially with the same attention and precision you can typically expect. If your books are in order and you have all your records straight, call a tax professional today and arrange an appointment.