Taxes & Business Operation
It's important to understand that taxes play a critical role in any successful business operation, either saving or costing money.
Many of you will know that you can deduct expenses in your small business, but there are also some not-so-obvious deductions you might not have considered!
Some Key Strategies to Expenses:
Keep track of every business expense, even the smallest ones. They add up, and together, they may even lower your tax bill.
Take advantage of every opportunity to claim business expenses to reduce your taxes.
If your business spends money on running expenses, you can only deduct a portion of those expenses.
What kind of expenses qualify as business expenses?
Business-specific items that you use exclusively.
In the space where you operate, you use things exclusively for your business.
When conducting business, you need these things.
Can your business deduct some of these lesser-known expenses?
Business tax, fees, licenses, and yearly dues for commercial or trade organizations. This excludes club membership used for dining, recreation or sporting activities.
Bank charges including bank processing fees.
Interest occurred on money borrowed for business purposes.
Business use of a home, including land and buildings used for your business, can be deducted from property taxes.
Business insurance for buildings, machinery, and equipment you use for your business.
Account receivables that won't get paid even if you've already included them as income, or the cost of recovering or collecting balances owing to you.
Private health services plan premiums for you and your employees.
Tax Savings
Tax savings can be significant for small business owners by claiming more expenses. The more expenses you claim, the lower your taxable income will be.
Until next time,
Christine Walters
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