Keeping your business taxes in order is a stressful job. It is ideal to hire an accountant if you are a business owner. Those that prefer to do their own taxes often find themselves going through an audit or having tax returns rejected from errors.
Separate Bank Accounts
Do not combine your personal and business bank accounts. These expenses need to be separate for income verification, accounting and to prove that your business is making a profit.
Home Office Deductions
If you have a dedicated home office, there are a few write-offs available. Deductions can be made for the cost of utilities, for the space, equipment and internet.
Mileage Deduction
Two options exist for claiming mileage. You can either track the miles put on your vehicle for business purposes and multiply them by $0.54/mile or itemize for the actual expenses. Among others, the qualifying expenses include maintenance, gas, vehicle insurance and tire purchases.
Hire a Family Member
Hiring family members, when you have an open position, may qualify as a business expense. The family member’s wages may be deductible.
Do Taxes as the Year Progresses
Rather than waiting until spring to do your business taxes, consider doing them quarterly, or even monthly. Your accounting staff should make you aware of available savings and any issues which may arise.
It is important for business owners to be aware of the credits and deductions they qualify for. With the help of a qualified accounting team, your business can find savings on tax liabilities. Keep careful records and make necessary changes to qualify for additional tax credits.
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