Spring is coming (at least we hope!), which means taxes are on everyone’s minds. While taxes can be complicated and vary greatly depending on your business type, state and other factors, we’ve compiled these universal small business tax season tips to help you save time and money this year!
- Take a close look at the Small Business Jobs Act Tax – it has many initiatives aimed at decreasing the tax burden for small businesses and may provide you with savings in a variety of areas. Start here first to determine what your options are!
- Be very careful with your bookkeeping. Keeping close track of all your business expenses throughout each month and year will make it easier in the long run. You’ll be able to enter all your expenses into your account system much faster and with more accuracy.
- Many Pros find themselves traveling a lot and incurring auto expenses and mileage. If you find yourself faced with the option of deducting either your auto expenses or mileage for business-related driving, take the mileage deduction. With gas prices so high, it’s likely to be a better deal. Just make sure to keep track of your mileage diligently.
- Always keep your business and personal expenses separate. If you haven’t already, you should open and maintain separate checking accounts as well as separate credit cards. This will make it much easier to keep track of business expenses, and you won’t have to worry about justifying purchases.
- For those Wedding Pros who offer physical goods (event rentals, flowers, décor), you can donate your unsold/unused inventory instead of spending money to store it somewhere. You can earn tax deductions based on these donations – but try to keep donations under $500 as the reporting rules are more thorough above that amount.
- You can also deduct education expenses that can be proven to maintain or improve your skills required in your given business. This can include seminars, classes and convention fees.
Follow these tips and you’ll complete your taxes faster and more accurately in 2014!
Looking for more small business tips? Check out our HR Basics Every Small Business Owner Should Know!